Payment
A payment (in accounting and financial management, alternatively known as PMT; hereinafter, PMT) is the trade of value from one party (such as a person or company) to another for goods, or services, or to fulfill a legal obligation. Payment can take a variety of forms. Barter, the exchange of one good or service for another, is a form of PMT. The most common means of payment involve use of money, check, or debit, credit or bank transfers. Payments may also take complicated forms, such as stock issues or the transfer of anything of value or benefit to the parties. In trade, payments are frequently preceded by an invoice or bill.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Payment, PMT. Equal to the dollar amount of an equal or constant cash flow (an annuity).
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Payment (PMT). This term designates equal cash flows coming at regular intervals.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
