reserve

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Reserve

An accounting entry that properly reflects contingent liabilities.

Allowance for Doubtful Accounts

Extra funds from sales, or another source, set aside in order to pay off bad debt if and when it arises. The allowance helps a company ward off any potential cash flow problems should its credit sales not be repaid as expected. On financial statements, it is important to note that an allowance for bad debts exists for fiscal conservatism and not because one expects a large amount of bad debt to accumulate. An allowance for doubtful accounts is also called a cushion. Banks call these funds the loan loss reserve. See also: Savings account.

Reserves

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.
References in periodicals archive ?
The joint project, delivered by Abu Dhabi Electricity and Water Authority (ADWEA), Transco and the UAE Environment Agency, has been described as the world's largest man-made desalinated water reserve, which will store 5.
EAD is aiming to raise awareness of the pressing need for a water reserve strategy, particularly in arid desert areas, and Abu Dhabi 's innovative approach to the issue through a highly informative exhibition display and workshop.
The Environment Agency - Abu Dhabi (EAD), is to turn a global spotlight onto strategic water reserves at this month's International Water Summit (IWS), which runs at Abu Dhabi National Exhibition Centre from January 15-18 as part of Abu Dhabi Sustainability Week.
Aboriginal landowners in the Territory will be better able to develop their land and create local jobs with the release of the Territory Labor Governments Strategic Aboriginal Water Reserves policy.
It's not uncommon to spot alligators living in water reserves on golf courses in Florida.
Meanwhile, the family members of the deceased alleged that Ambience management has developed a water reserve pond in the middle of the premises to fulfil needs of golf course developing adjacent to water reserve but they do not have security measures.
ARHEPP said that the water reserve at the dam is drying at least 20 meters a day and because it is already summer, the water elevation could go down fast to the critical level of 180 meters.
The periods with soil water reserve on watering depth below easily available water content on irrigation depth was considered the pedological drought.
AJDIR, Morocco: Revered as the "king of the forest" in Morocco, the native cedar tree is under increasing threat from illegal logging -- a crime which also threatens the country's main water reserve.
The drop has been attributed to lower water reserve levels.
Chen pointed out that 90,000 metric tons of water reserve kept in the park's public water tower will be depleted today, after filling the gap of 30,000 metric tons daily in the supply by Taiwan Water Corporation, due to difficulty in processing original water with high sand content in the wake of typhoon Morakot.
The participants said that lack of technology such as radars and satellites causes speculation about the actual water reserve, maintaining that such devices should be provided because they are minute in determining environmental problems, in addition to helping experts determine suitable remedies, plans and alternatives.

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