ALPHABET [ B ]

Bad Debts

• Amount owing by customer(s) which is not collectible despite all collection efforts.
• Needs to be written off and the value of the Accounts Receivable should be reduced according

Balance Sheet

• A financial statement which show the assets, liabilities and shareholders’ equity of an enterprise AT a particular point in time.

Bank Reconciliation Statement

• Normally a monthly statement reconciling the differences between a bank statement and the cash book. An adjusted bank statement should agree with the adjusted cash book balance. The cash book is adjusted for items not recorded in the cash book but recorded in the bank statement.

Basic earnings per share

• Profit or loss that is attributable to ordinary equity holders of the parent entity (the numerator) divided by the weighted average number of ordinary shares outstanding during the period (the denominator).

Base Stock

• The minimum inventory level necessary to maintain effective and continuous operations

Bear

• An investor who believes that prices of securites will fall.

Behavioural Accounting

• Approach to accounting that stresses psychological consideration in decision-making

Blue Chip

• Securities/shares of reputable or nationally known companies that give a lot of confidence to investors in terms of their long record of profit growth, dividend payout, quality of management, Generally, their share market price are very high hence having low yield.

Board of Directors

• Group of individuals appointed by the company’s shareholders at the annual general meeting. These people are empowered with certain rights and responsibilities. The board of director may comprise executive directors and non-executive directors

Bond

• Written promise by a company, government or other institution to pay the face value of a stated amount at maturity date. Periodic interest payments are usually made. Deep discounted bonds are issued well below the nominal value with nil or low interest rate. Bonds are referred to as debentures in companies.

Bonus issue

• the free issue of shares to existing ordinary shareholders on a proportionate basis, paid for out of the built-up undistributed profits of the business.

Book value

• the value of an asset as shown in the Balance Sheet; usually cost less total depreciated to date.

Bookkeeping

• is the most basic of all accounting function which involves the process of recording monetary transactions in the various books of accounts and preparing a trial balance.

Borrowing costs

• Interest and other costs incurred by an entity in connection with the borrowing of funds.

Break-Even Analysis

• It is a point where no gain or loss is made and it is where the volume of sales equal total cost. [ Refer article on break-even analysis written on this ]

Break-up value/ordinary share

• the residual value of net assets accruing to each ordinary share if the company went into liquidation.

Budget

• a quantitative plan expresses in terms of revenue, costs, assets and liabilities. It express a company’s financial and operating objectives

Budgetary Control

• to determine whether a company’s operations are carried out according to plan/budget. The budget is the standard/plan against which actual performance is compared to ensure that company’s objectives are running well.[ Refer article for difference between Budget and Budgetary Control]

Bull

• an investor who believes that the price of securities will rise.

Bull Market

• continuous rise in the price of securities which involve heavy trading as investors believe that the prices of securities will rise.

Business

• An integrated set of activities and assets conducted and managed for the purpose of providing: a return to investors; or lower costs or other economic benefits directly and proportionately to policyholders or participants. A business generally consists of inputs, processes applied to those inputs, and resulting outputs that are, or will be, used to generate revenues. If goodwill is present in a transferred set of activities and assets, the transferred set shall be presumed to be a business.

Business Combination

• For reporting purpose, where there is the combining of more than one business enterprise into a single business entity.

Business Segment

• A distinguishable components of a business that produces asset or service or a group of related products or services

By-Product

• Items of low sales value coming out from a production process.

If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.

Related Entries

• Glossary Of Accounting & Finance Terms-Alphabet N
• Glossary Of Accounting & Finance Terms-Alphabet H
• Valuation Of Securities : Other Factors That Needs To Be Consider
• Market To Book Ratio
• Financial Planning as One of The Key Finance Roles (Part 3)