Average Daily Balance Method

Business, Legal & Accounting Glossary

Definition: Average Daily Balance Method


Average Daily Balance Method


Full Definition of Average Daily Balance Method


A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) based on average balance that existed each day. Interest charges under this method are usually higher than the adjusted balance method but lower than the previous balance method.


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December 07, 2021 https://payrollheaven.com/define/average-daily-balance-method/.
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Average Daily Balance Method. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/average-daily-balance-method/ (accessed: December 07, 2021).
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Average Daily Balance Method. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/average-daily-balance-method/

Definition Sources


Definitions for Average Daily Balance Method are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.