Adjusted balance method

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Adjusted balance method

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.

Adjusted Balance Method

An accounting method that posts costs or recognizes revenue at the end of a time period after all activities over that time period have been processed. For example, a savings account usually uses an adjusted balance method because it calculates the interest at the end of each month or quarter, after all debits and credits over that month or quarter post to the account.
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