reserve

(redirected from reserved for)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 classic literature ?
The London solicitor, withdrawing himself for a moment from the absorbing prospect of the rain, pointed to the places reserved for the new-comer and for the legal adviser whom he had brought with him.
The Doctor still read from cover to cover his Lancet and his Medical Journal, attended all professional gatherings, worked himself into an alternate state of exaltation and depression over the results of the election of officers, and reserved for himself a den of his own, in which before rows of little round bottles full of glycerine, Canadian balsam, and staining agents, he still cut sections with a microtome, and peeped through his long, brass, old-fashioned microscope at the arcana of nature.
continued Barbicane, "that astonishment is reserved for the Selenites who inhabit the face of the moon opposite to the earth, a face which is ever invisible to our countrymen of the terrestrial globe.