What is an Account Balance?

[Samuel]

I often see the term account balance used in banking and accounting, but I’m a bit confused about its exact meaning. Does it refer to the total amount of money available in an account, or does it include pending transactions too? Also, how is the account balance shown differently in personal bank accounts versus business accounting ledgers?

 

[peterkavinsky]

An account balance is the total amount of money available in a financial account, showing funds after all deposits, withdrawals, and transactions are accounted for.

 

[Emly]

An account balance is the total amount of money available in a financial account, such as a bank account, at a specific time. It includes all deposits, withdrawals, and pending transactions.

 

[Will David]

The available balance or owed balance of money in an account of a bank or credit card or investment account is considered as the account balance; it includes all deposits, withdrawals, purchases, payments, interest and the fees charged to date.

 

[amara]

The account balance represents the current funds available in a financial account. It shows the net amount after all credits and debits are applied.