What you need to know about cash disbursement meaning
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What you need to know about cash disbursement meaning

Cash disbursement is the action that occurs when a person pays, or delivers, a certain amount of money. Usually in cash.

Cash disbursement meaning, in other words, is that action that occurs when a person gives a certain amount of physical money to another person, for very different reasons.

In this sense, let’s imagine that we buy a sandwich, for which we have to pay 3 dollars. So, we would say that we have spent $ 3 to get the sandwich, or that the outlay to purchase said sandwich has been $ 3.

As we say, the disbursement can occur for various reasons. For example, when we buy a product, or hire a certain service. The payment we make, usually in cash, is the disbursement. And we will have paid, incidentally, the amount delivered to acquire, or contract, said good or service.

Difference between disbursement and repayment

We must say that the antonym of the disbursement is reimbursement.

Therefore, a refund, unlike the previous concept, is the action that occurs when a person returns money that was disbursed. That is to say, money that another person disbursed, and that today he returns it.

Therefore, imagine a situation in which we buy a T-shirt, worth $ 30, which is useless because it is a different size. When going to return said garment, the clerk will take the shirt and reimburse us for the 30 dollars that, in its day, we disbursed for it. That is why we say that the reimbursement is the action contrary to the disbursement, since it is the action in which a disbursement is returned to us.

Cash disbursement meaning

Types of disbursement

We must know that the word disbursement, although it has the same meaning in the different contexts in which it is presented, can be used for many purposes.

Among these, the following stand out:

• Financial disbursement.
• Disbursement of shares .
• Capital outlay.
• Cash disbursement operations.

All of these, as well as others that we have not mentioned, are different types of disbursement. However, in all the action is the same: to give a certain amount of money to someone, for a certain reason.

Disbursement example

Although some examples have been given that present in a simple way what the act of disbursement represents, below are other examples that could further clarify the concept.

Let’s imagine that we buy a house, for which we take out a mortgage . This mortgage must be paid monthly, and has a duration of 30 years. The amount that we have to pay monthly is 300 dollars, while we give an input of 10,000 dollars.

In this example, we will say that we have made an initial outlay of $ 10,000, while we still have x disbursements of $ 300 left.

On the other hand, let’s imagine that we underwrite a package of shares in an IPO . These, in your computation, have a value of $ 30,000. When making the payment, we will say that we have paid a capital of $ 30,000, or x shares.

Thus, although we are talking about different examples, we can observe how in all of them, and each of them, the action of disbursing represents the same thing.

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