Reserve

Reserve may have one of the following meanings, depending the context of the term:

1. the nondeductible segregation of retained earnings to provide for such payouts as dividends, contingencies, improvements, or retirement of preferred stock.

2. an often deductible valuation reserve, also called allowance, for depreciation, bad debt losses, shrinkage of accounts receivable because of discounts taken, and other provisions created by charges against income.

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.