allowance account
- noun
- /əˈlaʊəns əˈkaʊnt/
- Specialized
:
cuenta de provisiones
- The company set aside a significant amount in the allowance account to prepare for potential asset devaluations.
Examples
-
During the annual audit, the accountant reviewed the allowance account to ensure there were sufficient reserves for unexpected changes.
-
Next, an understated allowance account could be due to judgment errors by the client's executives, managers, or professionals (i.e., Cause 5) with a base rate probability of 0.10.
Academic text (2004) -
Registries also allow program administrators to perform various functions, such as setting up allowance accounts, issuing allowances, and retiring allowances.
Academic text (2004) -
Although the term "registry" is used in several different ways, in the European trading system it refers to a computerized data system used to track allowance account information, allowance holdings, and transfers of allowances among private parties.
Academic text (2004) -
In order to safeguard against market fluctuations, the financial team established an allowance account to allocate necessary funds.
Synonyms
20
3.3
An amount of money set aside in business for possible losses
1
4.3
A place a bank or company keeps money to pay future costs
An account where a company keeps money to cover losses when assets lose value
A company keeps money from profits to cover possible drops in asset value
How Much
- Specialized
1
4.3
- Specialized
194
3.5
51
3.8
Surface Forms
Morphology
The components 'allowance' (a provision of funds) and 'account' (a record or ledger) combine in a way that lets a learner infer it is an account holding a financial provision or reserve. However, the precise accounting nuance (reserve for future asset-value changes, recorded as a charge against profits) is specialized and not fully predictable from the words alone, so prior exposure or domain knowledge is usually needed.
Etymology
Allowance account is like a company's piggy bank: the word allowance means an amount set aside and account is the place where the money is kept. So the company puts money there as a 'reserve' to cover 'future losses', which is why the amount is shown as a cost now to be ready later.