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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Dictionary Entries Near reserve account

Cite this Entry

“Reserve account.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/reserve%20account. Accessed 21 Apr. 2024.

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