Accountants Use Reserve Accounts for Various Reasons,for Each of the Scenarios

question 58

Essay

Accountants use reserve accounts for various reasons,for each of the scenarios below describe a specific account example that matches the scenario.
1.The use of a reserve account in order to match expense with revenues.
2.The use of a reserve account in order to keep expense out of the income statement.
3.The use of a reserve account in order to revalue an asset,but delay the income recognition effect.

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Definitions:

Random Variable

A variable that takes on different values randomly, each with a particular probability associated with it.

Standard Deviations

Measures of dispersion that indicate how spread out the values in a data set are around the mean.

Normal Distribution

A symmetric bell-shaped distribution that is widely used in statistics to represent the real-valued random variables with unknown distributions.

Standardized Form

A form of representation that allows different data sets or equations to be compared or analyzed using a common standard.