BROWSE

Absorbed Account

What is 'Absorbed Account'

An account that has been combined or that has merged with another related account. Accounts are often absorbed into existing accounts as a way of simplifying the accounting process. Once an account has been absorbed the original account will cease to exist, although a paper trail will remain to show how funds have been moved.

Explaining 'Absorbed Account'

Accounts are simply a way for a company or individual to separate finances into manageable categories, so it is not surprising that a separation or category that made sense at one time can become obsolete. When this happens, the obsolete account is absorbed into an area where it fits better. Rather than being a unique account, the absorbed account is combined with another existing account. When this is done at a business, the accountant or bookkeeper records and reconciles the changes.


Further Reading


An absorption approach to modeling the US current account
onlinelibrary.wiley.com [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …

The US current account deficit and economic development: collateral for a total return swapThe US current account deficit and economic development: collateral for a total return swap
www.nber.org [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …

EU funds absorption rate and the economic growthEU funds absorption rate and the economic growth
halshs.archives-ouvertes.fr [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …

Aid absorption and spending in Africa: A panel cointegration approachAid absorption and spending in Africa: A panel cointegration approach
www.tandfonline.com [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …

The absorption of financial services in an Islamic environmentThe absorption of financial services in an Islamic environment
www.sciencedirect.com [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …

How politics matters for EU funds' absorption problems–a fuzzy-set analysisHow politics matters for EU funds' absorption problems–a fuzzy-set analysis
www.tandfonline.com [PDF]
… Theories of international economics offer several approaches to explain the balance of payments … two I (2). Since all of the observed variables are stationary I (0) or integrated of order one I (1), we firstly examine the Croatian current account under absorption approach …



Q&A About Absorbed Account


When does an obsolete category become unnecessary?

An obsolete category becomes unnecessary when it no longer fits with the company's needs.

What happens when an obsolete category becomes unnecessary?

The obsolete category is absorbed into another area where it fits better.

Why are accounts often combined or merged into existing accounts as a way of simplifying accounting processes?

Accounts are often combined or merged as a way to simplify accounting processes because it makes managing finances easier.

How do you record and reconcile changes to an absorbed account?

The accountant records and reconciles the changes by recording them in the general ledger.

What is an absorbed account?

An absorbed account is a combined or merged account.