EQUITY FUNDING Definition

Bookmark and Share

EQUITY FUNDING see EQUITY CAPITAL.

Learn new Accounting Terms

LOAN-IN-PROCESS ACCOUNT (LIP ACCOUNT) serves as a deposit account for construction funds. The buyers down payment is deposited into this account and is used for the initial construction draws. Disbursements of actual loan funds begin once the buyers money is depleted. Interest on the borrowed funds will be billed monthly on the amount withdrawn. Upon completion of the house, the buyer will be asked to furnish a homeowners insurance policy and monies for completing the escrow account. Once final disbursements to the builder are made, monthly payments begin based on amortization of the balance at that time.

COST ELEMENT, in cost accounting, is the lowest level component of a resource activity, or cost object.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.