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Finance Dictionary and Glossary of Investment Terms
adjusted balance method
Definition 1.
A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) based on the account balance remaining after adjustments are made for payments and credits during the billing period. Interest charges are usually lower under this method than under other methods, such as average daily balance and previous balance methods.
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Definition 2.
Method of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method.
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Definition 3.
A finance/accounting method where costs are based on the amount(s) owing at the end of the current time period (once credits and payments are posted).
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