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