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allowance account

   Also found in: Encyclopedia, Wikipedia 0.02 sec.
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.allowance accountallowance account - a reserve fund created by a charge against profits in order to provide for changes in the value of a company's assets
valuation account, valuation reserve, allowance
reserve account, reserve fund - funds taken out of earnings to provide for anticipated future payments


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By mechanically relying on the write-off performed for financial accounting, taxpayers may be forgoing the opportunity to deduct currently the portion of the allowance account that represents partially worthless business debts.
The bad-debt reserve: opportunity for partial current deduction by Randolph, David W. / The Tax Adviser
For example, WorldCom recorded millions of dollars in expenses in asset accounts without audit detection, and Healthsouth created income by manipulating its contractual allowance account.
The PCAOB and the future of oversight: the board might achieve more ... by McDonnell, Patrick J. / Journal of Accountancy
"No matter how much money I place in the household allowance account, you always run short," he accused angrily.
MONEY Conflict$ by Parachin, Victor M. / Vibrant Life
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