reserve account

noun

1

: a valuation account that shows the estimated or actual decline in value of an asset and is always subtracted on a balance sheet from the related asset account to show net value

a reserve account for depreciation

reserve accounts for bad debts

reserve account to reduce investments to market value

called also allowance account, provision account, valuation account

2

: an account that shows an accrued usually estimated liability

reserve account for income taxes

3

: an account that shows profits or surplus segregated or appropriated for a particular purpose

reserve account for contingencies

reserve account for replacement of fixed assets

Word History

Etymology

reserve entry 3

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