DISBURSEMENT Meaning and
Definition
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Disbursement refers to the act of paying out or distributing funds or assets. It involves the transfer or release of money from a source to a recipient. This term is commonly used in financial contexts, such as businesses or organizations making payments to suppliers, employees, or creditors.
The disbursement process typically involves various steps, including the calculation and authorization of payment, followed by the actual transfer of funds. This may occur through electronic means, such as wire transfers or online banking systems, or through physical methods, like checks or cash.
Disbursements can take place in different scenarios, such as when an individual receives their salary or wages, when a student receives financial aid from a university, or when a government agency pays out benefits to citizens. It can also refer to the distribution of profits or dividends to shareholders in a company.
Effective disbursement management is crucial for ensuring that payments are made accurately, timely, and securely. Therefore, businesses and organizations often employ dedicated personnel or use specialized software to streamline the disbursement process and maintain accurate records.
In summary, disbursement is the act of disbursing funds or assets by a source to a recipient in various financial transactions. It encompasses the entire process of payment calculation, authorization, and transfer, facilitating the distribution of resources in a secure and efficient manner.
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• The act of paying out money; the money paid out-used in.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for DISBURSEMENT *
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Other Common Misspellings for DISBURSEMENT
Etymology of DISBURSEMENT
The word "disbursement" derives from the Middle English word "disbursen", which is coined from the Old French word "desbourser" (later spelt "débourser"). The Old French term itself combines the prefix "des-" (indicating reversal or removal) and the verb "bourser" (meaning "purse" or "leather bag"). Therefore, "disbursement" originally referred to the act of taking something out of or removing money from a purse or bag. Over time, the term evolved to its current meaning, which generally refers to the act of paying out or disbursing funds or resources.
Similar spelling words for DISBURSEMENT
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