Board of Directors A board of directors is a group of elected individuals who represent shareholders’ interests, overseeing the management and governance of a corporation or organization. This body makes key decisions on policy, strategy, and financial management, ensuring the company’s prosperity while meeting the interests of its stakeholders. In the business world, the board
Board Designated Restriction A board designated restriction refers to limitations or earmarks placed on certain funds or assets by an organization’s board of directors, dictating their use for specific purposes. Unlike restrictions imposed by donors or external parties, these restrictions are internally decided, allowing organizations, particularly non-profits, to allocate resources strategically towards certain projects, initiatives,
Blue Chip Stock A blue chip stock refers to the shares of a large, well-established, and financially sound company that has operated for many years. These stocks are known for their ability to endure tough market conditions and generate consistent, reliable returns for investors, making them a favored choice for long-term investment. Blue chip stocks
Blind Entry A blind entry is an accounting practice where a financial transaction is recorded without giving the person making the entry full details of the transaction. This method is used to ensure the integrity of the financial information by minimizing bias or errors that might occur if the person has too much information about
Bargain Purchase A bargain purchase occurs when a company acquires an asset or group of assets for a price significantly below their fair market value. This situation often arises in business acquisitions where the purchase consideration paid is less than the fair value of the net assets acquired, resulting in a gain for the purchasing
Blanket Purchase Order A blanket purchase order (BPO) is a type of purchase order issued by a buyer to a supplier, agreeing on the purchase of goods or services on an ongoing basis, under predefined terms, including prices, over a set period. Unlike standard purchase orders, which are specific to individual transactions, BPOs cover multiple
Billing Statement A billing statement is a periodic document sent by a creditor or service provider to customers, detailing the transactions, fees, payments, and outstanding balance within a billing cycle. It serves as a summary of account activity for a specific period, typically monthly, and includes important information such as payment due dates and minimum
Billing Cycle A billing cycle is the interval of time from the end of one billing statement date to the next billing statement date, typically lasting from 20 to 45 days, depending on the service provider or lender’s policy. This term is commonly used in credit card services, utilities, and subscription-based services to define the
Bill of Sale A bill of sale is a legal document that acts as a formal record of the transfer of ownership of an asset from a seller to a buyer. It specifies the details of the transaction, including information about the seller and buyer, a description of the item being sold, the sale price,
Bill of Materials A Bill of Materials (BOM) is a comprehensive list that details all the raw materials, parts, and components—including quantities—required to manufacture a product. This document serves as an essential blueprint for production planning, inventory management, and cost estimation, ensuring that all necessary materials are available for the manufacturing process. In the realm