Definition of Amounts in Parentheses
Parentheses around a number could have a variety of meanings. For example, parentheses could indicate any of the following:
- A negative amount, such as a negative balance in your check register
- A credit balance in an account that normally has a debit balance, or a debit balance in an account that normally has a credit balance
- A credit entry, when a debit entry will not have parentheses
- An unfavorable variance in standard costing, as opposed to a favorable variance which will not have parentheses
- An unfavorable budget variance (e.g. an actual expense is more than the budgeted amount, or actual revenues are less than the budgeted amount)
- An amount that is being subtracted
- The meaning of a negative amount in a series of amounts, such as the bottom line of a comparative income statement that states “Net income (loss)”
