RESOURCE ABSORPTION Definition

Bookmark and Share

RESOURCE ABSORPTION, in business, is the depletion of the finite resources available to a company, i.e., labor, machinery, materials, etc.

Learn new Accounting Terms

COMPENSATING BALANCES are the funds a business might be required to keep in a deposit or reserve account to help offset what the bank perceives as risk. The lender might require that an amount based on the business' average account balance or a certain percentage of the face value of the loan be maintained in a deposit account.

EXECUTE is to carry out an internal control procedure, such as to sign and mail a check after inspecting supporting documents.

Suggest a Term

Enter Search Term

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