The balance is an economic term that can have several meanings depending on the context in which it is used. For example, starting with the field of accounting, the balance refers to the difference between income and expenses (concept similar to that of expenses). To give you a more specific definition, the balance of an account is the result that is obtained after subtracting all the expenses that we have from the income of the specific account. So, in this way the figure that we will see in our account is the total sum of our income and expenses during a particular period. The concept of balance applies to all types of personal accounts, business accounts, organizations ... There is no distinction for this term, it is the same for everyone.
Balance types
There are 3 types of balance:
- Debtor
- Creditor
- Zero
The debtor consists of, as the name suggests, when money is owed. That is, when income is less than expenses. He creditor It is the opposite of the debtor, and it is a positive economic situation. If income is greater than expenses, your balance is positive. And finally, we have the zero or alternative type balance. This situation corresponds to when income and expenses are equal.
Also, another meaning of balance is the amount of an account that is in favor or against the owner of the same. And for example, when you go to the bank and want to know the result of your account, this term is used to refer to the result of your bank account. On the other hand, the balance can also refer to when you are going to pay for a service or a good, but you have no money and you leave a signal. The remainder that you have to pay is called your balance.