Accounting Dictionary - Letter R

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Reserve
(1) Retained earnings appropriated for a specific purpose. Examples include reserve for contingencies; reserve for self-insurance; reserve for uncollectible amounts; reserve for possible price decline of inventory; and reserve for foreign operations. (2) A contra asset account. Examples include reserve for bad debts and reserve for depreciation. (3) In governmental accounting, a portion of fund equity reserved for some future use and thus, not available for appropriation or expenditure.
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