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:

Toluene

A mono-substituted benzene derivative, where a methyl group replaces one hydrogen atom, used widely as an industrial solvent.

Synthesis

The process of combining different entities to form a new, complex product, often used in the context of chemical synthesis.

Organic Product

A compound or substance produced from an organic reaction, typically containing carbon atoms bonded to hydrogen, oxygen, or other atoms.

Reaction

A process in which one or more substances are changed into one or more new substances through the reorganization of molecular or ionic structures.