Outrageously Funny Word Dictionary :: Disallowances

👉 In accounting, a disallowance is an adjustment to a financial statement that prevents a previously recognized expense from being reflected in the statement. It occurs when an expense or gain is realized but not recorded due to an incorrect classification of the transaction. For example, if a company sells a product for $10,000 and realizes a profit of $8,000, it would be considered a disallowance because the profit should have been recorded as an expense. However, since

disallowances