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reserve
(redirected from Reserve funds)

    Also found in: Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Reserve
An accounting entry that properly reflects contingent liabilities.
reserve
The funds that are earmarked by a firm from its retained earnings for future use, such as for the payment of likely-to-be-incurred bad debts. The existence of such a reserve informs readers of the firm's financial statements that at least a part of the retained earnings will not be available to the stockholders. See also allowance for doubtful accounts, reserve for contingencies.


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