An auditor is one who conducts an audit. Specifically, an auditor is a person or firm (usually an accountant or accounting firm) that conducts a formal examination and verification of an individual’s or organization’s records and accounts, finances, or compliance with a set of standards.
[Last reviewed in November of 2024 by the Wex Definitions Team]
Bad debt refers to debt such as a loan or advance that a creditor can no longer recover. A debt cannot be recovered for a variety of reasons such as insolvent debtors.
Bad faith refers to dishonesty or fraud in a transaction. Depending on the exact setting, bad faith may mean a dishonest belief or purpose, untrustworthy performance of duties, neglect of fair dealing standards, or a fraudulent intent.
A bailout is the rescue of an entity that is in financial trouble through the injection of capital. Although the resources for a bailout may come from a business, individual or government (the 1907 bailout of the financial sector by the individual J.P.
Balance due is the amount owed on a previous statement for which payment has been required but not been made. It is usually manifested as the amount of a debt still owed on an account or the principal outstanding on a promissory note. Balance due generally does not contain interest that has not accrued.
A balance sheet is a financial statement that consists of a three-part summary of a company's assets, liabilities, and ownership equity at a particular instance in time. It is intended to show the financial condition of a company at that time.
A balloon mortgage is a mortgage where the payments are not large enough to pay off the entire mortgage during its amortization period.
Balloon payments refer to very large payments at the end of some short-term loans called balloon loans. Balloon loans are used in commercial settings and sometimes for personal loans, but since the balloon payment often is more than twice the regular payments, individuals rarely receive balloon loans. These loans usually begin with a fixed interest rate for the set loan period.
According to the U.S. Code, a bank or trust company is incorporated and engaged in the business of financial transactions under the laws of the United States or of any State.
