Definition

Noun: 1. The act of paying out money, especially from a fund or treasury: The process of distributing or expending funds. 2. A specific sum of money paid out: An amount of money that has been spent or distributed.

Usage

• Disbursement is a formal term, commonly used in financial, business, and legal contexts to describe the official payment of money.
• It often implies a systematic or authorized payment from a specific source, such as a company's accounts, a loan, a grant, or an estate.
• The word focuses on the action of paying out or the specific payment itself, rather than the general concept of spending.

Examples

• The disbursement of the scholarship funds will occur at the start of the semester.
• We are awaiting the bank's disbursement of the loan.
• All project disbursements must be approved by the finance department.
• The executor handled the disbursement of the inheritance to the beneficiaries.

Advanced Usage

• Capital vs. Expense Disbursement: In accounting, a disbursement can be categorized as either a capital expenditure (for long-term assets) or an operating expense (for day-to-day costs, often tax-deductible).
• Controlled Disbursement: A cash management service where a bank provides early morning notification of the day's total disbursements from an account.

Variants and Related Words

• Disburse (verb): To pay out money, especially from a fund.
  • The bank will disburse the funds once the contract is signed.
• Disburser (noun): A person or entity that makes disbursements.

Synonyms

• Payment: The act of paying money.
• Expenditure: The action of spending funds.
• Outlay: An amount of money spent.
• Payout: A large payment or the act of making one.

Antonyms

• Receipt: The act of receiving money.
• Collection: The action of collecting money.
• Deposit: A sum of money placed into an account.

Related Phrases

• Disbursement schedule: A timeline detailing when specific payments will be made.
• Disbursement account: A bank account specifically used for making payments.

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)