CLEARING ACCOUNT Definition

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CLEARING ACCOUNT, in banking, is a bank account used by a mortgage servicing company for the temporary, short-term deposit of mortgage payments that have been collected and are either awaiting transmittal to investors who bought the mortgages or awaiting deposit in escrow accounts. See CASH CLEARING ACCOUNT.

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PROFIT & LOSS ACCOUNT shows the net profit which is left after all relevant business expenses have been deducted.

VOLUME GAIN is to obtain advantages due to increase in volume, such as value increase, points in gross margin or profit.

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