diff --git a/hledger-lib/Hledger/Data/AccountName.hs b/hledger-lib/Hledger/Data/AccountName.hs
index 1a6d0f465..48e5fbd34 100644
--- a/hledger-lib/Hledger/Data/AccountName.hs
+++ b/hledger-lib/Hledger/Data/AccountName.hs
@@ -138,6 +138,14 @@ accountNameType :: M.Map AccountName AccountType -> AccountName -> Maybe Account
 accountNameType atypes a = asum (map (`M.lookup` atypes) $ a : parentAccountNames a)
                          <|> accountNameInferType a
 
+-- | The level (depth) of an account name.
+--
+-- >>> accountNameLevel ""  -- special case
+-- 0
+-- >>> accountNameLevel "assets"
+-- 1
+-- >>> accountNameLevel "assets:cash"
+-- 2
 accountNameLevel :: AccountName -> Int
 accountNameLevel "" = 0
 accountNameLevel a = T.length (T.filter (==acctsepchar) a) + 1
diff --git a/hledger-lib/Hledger/Reports/BalanceReport.hs b/hledger-lib/Hledger/Reports/BalanceReport.hs
index 0512e35c5..4940bc812 100644
--- a/hledger-lib/Hledger/Reports/BalanceReport.hs
+++ b/hledger-lib/Hledger/Reports/BalanceReport.hs
@@ -71,7 +71,7 @@ balanceReport rspec j = (rows, total)
     report = multiBalanceReport rspec j
     rows = [( prrFullName row
             , prrDisplayName row
-            , prrIndent row - 1  -- BalanceReport uses 0-based account depths
+            , prrIndent row
             , prrTotal row
             ) | row <- prRows report]
     total = prrTotal $ prTotals report
diff --git a/hledger-lib/Hledger/Reports/MultiBalanceReport.hs b/hledger-lib/Hledger/Reports/MultiBalanceReport.hs
index 3468ada44..3eb068524 100644
--- a/hledger-lib/Hledger/Reports/MultiBalanceReport.hs
+++ b/hledger-lib/Hledger/Reports/MultiBalanceReport.hs
@@ -400,34 +400,33 @@ buildReportRows ropts displaynames =
         rowavg = averageMixedAmounts rowbals
     balance = case accountlistmode_ ropts of ALTree -> aibalance; ALFlat -> aebalance
 
--- | Calculate accounts which are to be displayed in the report, as well as
--- their name and depth
+-- | Calculate accounts which are to be displayed in the report,
+-- and their name and their indent level if displayed in tree mode.
 displayedAccounts :: ReportSpec
                   -> Set AccountName
                   -> HashMap AccountName (Map DateSpan Account)
                   -> HashMap AccountName DisplayName
 displayedAccounts ReportSpec{_rsQuery=query,_rsReportOpts=ropts} unelidableaccts valuedaccts
-    | qdepth == 0 = HM.singleton "..." $ DisplayName "..." "..." 1
+    | qdepth == 0 = HM.singleton "..." $ DisplayName "..." "..." 0
     | otherwise  = HM.mapWithKey (\a _ -> displayedName a) displayedAccts
   where
+    displayedName name = case accountlistmode_ ropts of
+        ALTree -> DisplayName name leaf (max 0 $ level - 1 - boringParents)
+        ALFlat -> DisplayName name droppedName 0
+      where
+        droppedName   = accountNameDrop (drop_ ropts) name
+        leaf          = accountNameFromComponents . reverse . map accountLeafName $
+                          droppedName : takeWhile notDisplayed parents
+        level         = max 0 $ (accountNameLevel name) - drop_ ropts
+        parents       = take (level - 1) $ parentAccountNames name
+        boringParents = if no_elide_ ropts then 0 else length $ filter notDisplayed parents
+        notDisplayed  = not . (`HM.member` displayedAccts)
+
     -- Accounts which are to be displayed
     displayedAccts = (if qdepth == 0 then id else HM.filterWithKey keep) valuedaccts
       where
         keep name amts = isInteresting name amts || name `HM.member` interestingParents
 
-    displayedName name = case accountlistmode_ ropts of
-        ALTree -> DisplayName name leaf . max 0 $ level - boringParents
-        ALFlat -> DisplayName name droppedName 1
-      where
-        droppedName = accountNameDrop (drop_ ropts) name
-        leaf = accountNameFromComponents . reverse . map accountLeafName $
-            droppedName : takeWhile notDisplayed parents
-
-        level = max 0 $ accountNameLevel name - drop_ ropts
-        parents = take (level - 1) $ parentAccountNames name
-        boringParents = if no_elide_ ropts then 0 else length $ filter notDisplayed parents
-        notDisplayed = not . (`HM.member` displayedAccts)
-
     -- Accounts interesting for their own sake
     isInteresting name amts =
         d <= qdepth                                  -- Throw out anything too deep
diff --git a/hledger-lib/Hledger/Reports/ReportTypes.hs b/hledger-lib/Hledger/Reports/ReportTypes.hs
index 8868257b9..88aad3afa 100644
--- a/hledger-lib/Hledger/Reports/ReportTypes.hs
+++ b/hledger-lib/Hledger/Reports/ReportTypes.hs
@@ -227,13 +227,12 @@ instance ToJSON DisplayName where
     toJSON = toJSON . displayFull
     toEncoding = toEncoding . displayFull
 
--- | Construct a flat display name, where the full name is also displayed at
--- depth 1
+-- | Construct a display name for a list report, where full names are shown unindented.
 flatDisplayName :: AccountName -> DisplayName
-flatDisplayName a = DisplayName a a 1
+flatDisplayName a = DisplayName a a 0
 
--- | Construct a tree display name, where only the leaf is displayed at its
--- given depth
+-- | Construct a display name for a tree report, where leaf names (possibly prefixed by
+-- boring parents) are shown indented).
 treeDisplayName :: AccountName -> DisplayName
 treeDisplayName a = DisplayName a (accountLeafName a) (accountNameLevel a)
 
diff --git a/hledger/Hledger/Cli/Commands/Balance.hs b/hledger/Hledger/Cli/Commands/Balance.hs
index 97d99e1fa..d9c90c6b0 100644
--- a/hledger/Hledger/Cli/Commands/Balance.hs
+++ b/hledger/Hledger/Cli/Commands/Balance.hs
@@ -932,7 +932,7 @@ multiBalanceReportAsTable opts@ReportOpts{summary_only_, average_, row_total_, b
         fullRowAsTexts row = (replicate (length rs) (renderacct row), rs)
           where
             rs = multiBalanceRowAsText opts row
-            renderacct row' = T.replicate ((prrIndent row' - 1) * 2) " " <> prrDisplayName row'
+            renderacct row' = T.replicate (prrIndent row' * 2) " " <> prrDisplayName row'
     addtotalrow
       | no_total_ opts = id
       | otherwise =
@@ -1343,7 +1343,7 @@ renderPeriodicAcct ::
     ReportOpts -> Text -> PeriodicReportRow DisplayName a -> Text
 renderPeriodicAcct opts space row =
     renderBalanceAcct opts space
-        (prrFullName row, prrDisplayName row, prrIndent row - 1)
+        (prrFullName row, prrDisplayName row, prrIndent row)
 
 
 -- tests