posted on 06-06-2019
Account Balance
Updated October 1, 2019
What is an Account Balance?
An account balance is a statement of how much money is in an account.
How Does an Account Balance Work?
For example, let's say John Doe deposits $100 into a new bank account. He withdraws $45 the next day. Then he deposits $20. His new account balance is $100 - $45 + $20 = $75.
Why Does an Account Balance Matter?
An account balance can also be the amount owed to a creditor. For example, if John Doe gets a new credit card, buys patio furniture for $1,000, and charges his $150 dinner out, his account balance on his credit card is $1,150 (and he has only $75 in his bank account, so he might have a big problem).
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