Related Words

Previous Balance Method: Method of calculating finance charges based on the account balance at the end of the previous month.

Average Daily Balance: The average daily balance method is one of the ways that the finance charge on your credit card may be calculated. The credit card company issuer divides the balance you owe each day by the . . . View Full Definition

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 . . . View Full Definition

Periodic Inventory Method: A system of accounting for inventory in which cost of goods sold is determined and inventory is adjusted at the end of the accounting period, not when merchandise is purchased or sold.

Open-Pot Method: Brewing method in which the ground coffee is steeped (not boiled) in an open pot, and separated from the brewed coffee by settling or straining.

Order Imbalance: An order imbalance occurs when there are substantially more buy orders in a particular security than there are sell orders, or the reverse. The result is a wide spread between bid and ask pr . . . View Full Definition

On Balance: Used for listed equity securities. Left over after pairing off other market buy and sell orders, usually before the opening of a stock or market but at times at the close (especially during . . . View Full Definition

Normalizing Method: Making a change in the income account equivalent to the tax savings realized through the use of different depreciation methods for shareholder and income tax purposes, thus washing out the b . . . View Full Definition

Off-Balance-Sheet Financing: Financing that is not shown as a liability on a company's balance sheet.

Perpetual Inventory Method: A system of accounting for inventory in which detailed records of the number of units and the cost of each purchase and sales transactions are prepared throughout the accounting period.