Almost everyone has heard of such a term as balance.What it is, of course, it is known to all accountants and economists.But for most ordinary people is a word associated only with the concept of "difference."The term, which is often heard at all, is one of the basic theory of accounting.In the most general sense, it actually refers to the difference between the proceeds and assets all expenses for a certain period of time.But this concept is actually much broader.
Balance - is an Italian word, which became part of Russian as an accounting term in the nineteenth century.Literally it translates as "payment", "residue", "payback."In economic terms, the word means the difference between the sum of debits (credits accounts) and credit (expense account).By the twentieth century, the term has increased significantly, going beyond purely accounting.At the end of the century it has already started to be used also in a figurative sense.
debit balance - a situation in which the debit exceeds credit, that is, shows the asset balance for this type of economic resources at a certain time.
Credit - a situation in which the credit over debit, which shows the status of the sources of funds used for economic activities and is reflected in the balance sheet liabilities.
When the difference between debit and credit is zero, at the expense of business transaction closes.
practice is analyzed, usually not the whole story of accounting from the date of occurrence of a company, but only for a certain period, called reporting (monthly, quarterly, etc.).In this regard, there are the following concepts.
initial balance (incoming) - is the residue of a specific account of the beginning of the period.Calculated from previous operations.
final (outgoing) saldo- is the account balance as of the end of the period.Calculated as the sum of the opening balance and all the revolutions in the period.
balance for the period - the final result of all transactions made for a specific period.
The credit (or debit) turnover for the period - is calculated up to the accounts only for the required period.
in the modern sense is still, as in the nineteenth century, the balance - is the difference between the totals of the debit and credit accounts.But today, in addition to accounting, the term is also used in foreign economic relations.
foreign relations are often viewed as the sum of exported and imported goods for a certain period.In this respect, it identified a number of varieties.
trade balance - the result of calculating the difference between the value of exports and imports.It is believed that a negative index is a bad trend, because it means that there was a situation in which the market is flooded with imported products, which inevitably leads to the infringement of the interests of domestic producers.However, in practice it is not always so.For example, the United States under these indicators are quite successful economy, as a benchmark for the world economic prosperity and stability.They learned how to use other tools to resolve this situation.
balance of payments - the result of the calculation of the difference between revenues from abroad and payments abroad.A positive index means the excess of cash receipts over payments from the outside in the opposite direction.A negative figure indicates excess payments from the proceeds of money into the country.This means a gradual reduction of foreign exchange reserves of the state.Such a situation can be avoided only if such calculations produce exclusively in the national currency of the country.
