reserve


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to reserve: military reserve, dictionary

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 DSC will provide the reserve and active components one-stop shopping by providing standardized training in today's SDDC," said Lt.
In many instances, with insufficient funding for additional positions, police departments have sought alternatives, one being the employment of reserve officers.
The bad news is that much of the world's oil reserves are in the custody of unstable and sometimes hostile regimes.
To ensure that the information in appendix A accurately describes the structure of check-processing operations within the Federal Reserve System, the final rule revises the lists of routing symbols associated with Federal Reserve offices to reflect the reassignments discussed above.
The statutory reserve calculated by this method significantly exceeds the economic reserve, which is based on the insurer's realistic actuarial assumptions.
More than 800 members of an Encino-based Marine Forces Reserve unit also was deployed in Iraq.
The necessary size for a reserve to flourish and to replenish the area around it depends on the flora and fauna present.
801-4 points out that the reserve ratio test of Sec.
In 1987, in response to a General Accounting Office audit of its solvency, the FSLIC assessed a special premium against some member institutions by extinguishing the secondary reserve.
Debate about the extent of the worlds remaining oil reserves and their rate of depletion is ongoing, following a spate of shock devaluations of reserves by many oil majors.
The annual indexing of the low reserve tranche and the reserve requirement exemption amount is based on growth in net transaction accounts and total reservable liabilities, respectively, at all depository institutions between June 30, 2004, and June 30, 2005.
One key proposal to change the reserve requirements under AG 38 for certain UL products with secondary guarantees was offered in 2004 by New York State Insurance Department actuary, William Carmello.