noun
Etymology: reserve (III)
1. : a valuation account that shows the estimated or actual decline in value of an asset and is always subtracted on a balance sheet from the related asset account to show net value
a reserve account for depreciation
reserve accounts for bad debts
reserve account to reduce investments to market value
— called also allowance account, provision account, valuation account
2. : an account that shows an accrued usually estimated liability
reserve account for income taxes
3. : an account that shows profits or surplus segregated or appropriated for a particular purpose
reserve account for contingencies
reserve account for replacement of fixed assets