What Is an Advance Premium? An advance premium is an initial premium paid to bind an insurance policy for a given period of time. The most commonly known use of the term “advance premium” is with respect to fluctuating insurance payments, such as om payroll-based insurance policies, where the actual amount due is not known until after
What Is the Adjusted Book Value? Adjusted book value is the measure of a company’s valuation after liabilities—including off-balance sheet liabilities—and assets adjusted to reflect true fair market value. The potential downside of using adjusted book value is that a business could be worth more than its stated assets and liabilities because it fails to
What Is Adjusted Cost Base (ACB)? An adjusted cost base (ACB) is an income tax term that refers to the change in an asset’s book value resulting from improvements, new purchases, sales, payouts, or other factors. An adjusted cost base can be calculated on a single or a per-unit basis and represents the actual cost
What Is an Adjusted Debit Balance? An adjusted debit balance is the amount in a margin account that is owed to the brokerage firm, minus profits on short sales and balances in a special miscellaneous account (SMA). Debit balances can be contrasted with credit balances, which are funds owed to a customer’s margin account by
What Are Adjusted Earnings? Adjusted earnings is a metric used in the insurance industry to evaluate financial performance. Adjusted earnings equals the sum of profits and increases in loss reserves, new business, deficiency reserves, deferred tax liabilities, and capital gains from the previous time period to the current time period. Adjusted earnings provides a measurement of
What Is Adjusted EBITDA? Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a measure computed for a company that takes its earnings and adds back interest expenses, taxes, and depreciation charges, plus other adjustments to the metric. Standardizing EBITDA by removing anomalies means the resulting adjusted or normalized EBITDA is more accurately and easily comparable
What Is the Adjusted Exercise Price? The adjusted exercise price is an option contract’s strike price after adjustments have been made for corporate actions such as stock splits or special dividends made to its underlying security. Any time that changes occur to the securities on which options are written, the strike price and delivery quantity
What Is Adjusted Gross Estate? The adjusted gross estate is the net worth of a deceased person’s estate after deducting the cost of any outstanding debts and administrative costs. Key Takeaways Adjusted gross estate is the net worth of a deceased person’s estate outstanding debts and administrative costs.Taxes are levied on the adjusted gross estate
What Is the Adjusted Net Asset Method? The adjusted net asset method is a business valuation technique that changes the stated values of a company’s assets and liabilities to reflect its estimated current fair market values better. By adjusting asset or liability values up or down, the net effect offers values that can be used
What Is Adjusted Net Worth? Adjusted net worth calculates the value of an insurance company, using capital values, surplus values, and an estimated value for business on the company’s books. It starts with the estimated value for the business and adds unrealized capital gains, the capital surplus, and the voluntary reserves. Key Takeaways Adjusted net worth is a
