reserve account

noun
funds taken out of earnings to provide for anticipated future payments
Syn: ↑reserve fund
Hypernyms: ↑reserve, ↑backlog, ↑stockpile

* * *

noun
Etymology: reserve (III)
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


Useful english dictionary. 2012.

Look at other dictionaries:

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