Definition

1. Noun:
   • The act of spending or disbursing money: "Disbursal" refers to the process or action of paying out money, typically from a fund or account, for expenses, services, or goods.
   • Amounts paid for goods and services that may be currently tax deductible: In accounting and finance, "disbursal" can also denote the specific sums of money expended, which are often operational expenses that might be deductible from taxable income in the current period, as opposed to capital expenditures.

Usage Examples

• Noun:
  • The disbursal of the grant funds was handled by the finance department. (The payment of the grant money was managed by the finance department.)
  • All project disbursals must be documented with receipts. (All project expenditures must be recorded with proof of payment.)
  • These disbursals are considered operating expenses and are tax deductible. (These paid amounts are viewed as running costs and can be subtracted from taxable income.)

Advanced Usage

• "Disbursal of funds": A common collocation emphasizing the payment from a specific source of money.

  • The timely disbursal of loan funds is crucial for the business. (The prompt payment of the loan money is essential for the business.)

• "Record of disbursals": Refers to the documentation or log of all payments made.

  • The auditor reviewed the complete record of disbursals for the fiscal year. (The inspector examined the full log of expenditures for the financial year.)

Variants and Related Words

• Disburse (verb): To pay out money.

  • The bank will disburse the loan once the contract is signed. (The bank will pay out the loan once the agreement is signed.)

• Disbursement (noun): A synonym for "disbursal," often used interchangeably to mean the act of paying out or the sum paid.

  • We are awaiting the next disbursement from the investor. (We are waiting for the next payment from the investor.)

Synonyms

• Expenditure: The action of spending funds or the amount spent.
• Outlay: An amount of money spent on something.
• Payout: A large payment of money, especially as a settlement or prize.

Related Phrases

• Capital expenditure vs. operating disbursal: A key distinction in finance where capital expenditure is for long-term assets, while an operating disbursal is for day-to-day expenses.
  • Buying a new building is a capital expenditure, whereas paying the electricity bill is an operating disbursal. (Purchasing a new structure is an investment in a long-term asset, while settling the power bill is a routine expense payment.)

Noun

1. the act of spending or disbursing money
2. amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures)