allowance(redirected from allowence)
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2. See: Capital allowance.
3. See: Allowance for depreciation.
4. See: Allowance for doubtful accounts.
5. See: Withholding allowance.
6. See: Mileage allowance.
An accounting term used to describe entries on a profit and loss statement for expenses that might become necessary in the future. Examples include an allowance for bad debt, in which a certain percentage of income is deducted because of the likelihood it will be uncollectible.