The word "disbursement" refers to the act of paying out or distributing money, often from a fund or account. In a financial context, it usually describes the process where funds are allocated for various expenses or payments, such as salaries, bills, or other obligations. It indicates a movement of money from one party to another and is commonly used in budgeting and accounting discussions.
The word "disbursement" originates from the early 15th century and is derived from the Old French word "desbourser," which means "to pay out." The prefix "dis-" means "apart" or "away," and "burse" relates to a purse or bag of money, so it essentially conveys the idea of taking money from a purse to pay out.