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valuation account

valuation account

7.7
An account where a company keeps money to cover losses when assets lose value
  • noun
  • Specialized
translation icon : cuenta de valoración
  • The company created a valuation account to prepare for possible decreases in inventory value.

Examples

  • Auditors reviewed the valuation account to ensure it reflected the changes in asset worth.

  • Our valuation accounts are updated quarterly to reflect market changes.

  • A well-managed valuation account helps companies report accurate profits and prevent financial surprises.

  • The company established a valuation account to manage asset fluctuations.

  • A well-managed valuation account helps companies report accurate profits and prevent financial surprises.

  • Auditors reviewed the valuation account to ensure it reflected the changes in asset worth.

  • The company created a valuation account to prepare for possible decreases in inventory value.

Synonyms

reserve account
vsvaluation account
  • Specialized
1 4.3

A place a bank or company keeps money to pay future costs

focuses instead on covering changes in asset values rather than payments
allowance account
vsvaluation account
  • Specialized
6.8

A record where a company keeps money for future loss in value of its goods

is the same concept but named as an official ledger record
valuation reserve
vsvaluation account
  • Specialized
8.1

A company keeps money from profits to cover possible drops in asset value

records the same money as a continuing ledger entry rather than an amount

How Complete

write-off
  • Specialized
17 5.7
impairment
62 6.1
write-down
  • Specialized
4 6.4
valuation account
  • Specialized
7.7

Surface Forms

Morphology

valuation + account

The meaning is directly compositional from 'valuation' (estimating the value of something) + 'account' (a financial record): it denotes an account used for valuation or valuation adjustments. This noun–noun construction follows a straightforward, cross-linguistically common pattern, so a B1 learner who knows both constituents should be able to infer the meaning.

Etymology

Valuation account joins valuation (checking how much something is worth) and account (a separate record or pot of money). Companies keep a valuation account to set aside money or record changes when an asset's value goes up or down, so it means 'an account for changes in asset value'.