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Cash Disbursements & Receipts Form

Cash Disbursements & Receipts Form

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so today I'd like to talk to you about constructive receipts and disbursements so what is a constructive receipt and disbursement well there may be situations where an entity enters into an arrangement in which the cache is received by or dispersed from another party on behalf of the entity so even though in this situation there isn't a direct exchange of cash flows to and from The Entity the same economics here would apply so because of this you have to assume and think about the cash flows as it's as if they are being received and dispersed by The Entity directly so this is is really common in industries that have inventory financing Arrangements but it's also relevant to other Industries so for example if you just think about a real common real estate transaction in which a company purchases real estate by taking out a mortgage with a third-party Bank so in this case at the closing of the transaction the bank would send directly to an escrow account t

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