What is ending balance?
Understand the Problem
The question is asking for the definition or explanation of what 'ending balance' means, typically in a financial context. Ending balance usually refers to the amount of money remaining in an account at the end of a specified period, taking into account all transactions that occurred during that period, such as deposits, withdrawals, and interest.
Answer
The net residual balance in an account at the end of a reporting period.
The ending balance is the net residual balance in an account at the end of a specific reporting period. It is determined by adding up all transactions during that period to the beginning balance.
Answer for screen readers
The ending balance is the net residual balance in an account at the end of a specific reporting period. It is determined by adding up all transactions during that period to the beginning balance.
More Information
The ending balance is crucial for preparing financial statements and involves components like revenues, expenses, and liabilities.
Sources
- Ending Balance - accountingtools.com
- What are Beginning and Ending Balances? - Aptora - aptora.com
- What is an Ending Balance? - SuperfastCPA - superfastcpa.com
