DEFINITION of 'Disbursement'

The act of paying out or disbursing money. Disbursements can include money paid out to run a business, spending cash, dividend payments, and/or the amounts that a lawyer might have to pay out on a person's behalf in connection with a transaction.

BREAKING DOWN 'Disbursement'

When money is disbursed, it is a cash outflow. Cash flow is a measure of the cash inflow, revenue, and cash outflows, or disbursements. Ideally, there will be more money flowing in than flowing out. If cash flow is negative (in other words disbursements are higher than revenues), it can be an early warning of potential insolvency.

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  2. Cash Flow

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  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Cash Disbursement Journal

    A record kept by accountants to record all financial expenditures ...
  5. Zero Balance Account - ZBA

    A checking account in which a balance of zero is maintained by ...
  6. Manufactured Payment

    A payment made to pass through dividend and interest payments ...
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