Definition of Clearing account:
A temporary account that holds costs until they can be transferred elsewhere. For example, a company might use a clearing account to hold revenue and costs when completing year-end fiscal calculations. When the company has finished placing the revenue and costs in the account it can then transfer the amount to the companys net earnings.
How to use Clearing account in a sentence?
- It looks like my main bank account is a little low on funds this month, so I will transfer some funds from my clearing account to my main account, to make up for the loss.
- You may want to make sure that you keep a good clearing account so that you can always have a place for your money to go.
- I had all the money in a clearing account because I would be moving it to a new one pretty soon.
Meaning of Clearing account & Clearing account Definition