Disbursement

/dɪsˈbɜrsmənt/ noun

Definition

The payment or distribution of money from a fund, account, or treasury. In corporate finance, disbursements include dividend payments, loan proceeds, or distributions from investment funds to investors.

Etymology

From Old French desbourser, from des- (away) and bourse (purse), literally meaning 'to pay out from the purse'. The term entered English in the 16th century and became standard in accounting and finance terminology.

Kelly Says

Disbursements are the opposite of receipts in cash flow - think of them as money flowing out of the corporate 'purse', and tracking disbursement timing is crucial since paying bills too early hurts cash flow while paying too late damages relationships!

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