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:

Sphygmomanometer Gauge

Part of a sphygmomanometer device used to measure arterial blood pressure by indicating the force at which blood is pressed against the vessel walls.

Systolic Reading

The higher number in a blood pressure measurement, indicating the pressure in the arteries when the heart beats.

Diastolic Reading

The lower value in a blood pressure measurement, representing the pressure in the arteries when the heart rests between beats.

Dizzy Spells

Temporary episodes of dizziness or lightheadedness that can result from a variety of causes, including dehydration, blood pressure fluctuations, or inner ear problems.