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

The 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 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 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 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 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