Inventory Reserve


Inventory Reserve
An accounting entry that represents a deduction from earnings for the purpose of fairly and reasonably representing the value of inventoried assets on a balance sheet. The inventory reserve is used to make up for the fact that all inventory will not be sold at the cost to the firm.

An inventory reserve is a contra account on a balance sheet, and an important part of inventory accounting in GAAP.


Investment dictionary. . 2012.

Look at other dictionaries:

  • reserve — [n1] supply ace in hole*, assets, backlog, cache, capital, drop, emergency fund*, fund, hoard, insurance, inventory, nest egg*, plant, provisions, rainy day fund*, reservoir, resources, savings, stash*, stock, stockpile, store, wealth; concepts… …   New thesaurus

  • inventory — [n] list of stock; stock account, backlog, catalogue, file, fund, hoard, index, itemization, record, register, reserve, reservoir, roll, roster, schedule, stock book, stockpile, store, summary, supply, table, tabulation; concepts 283,338 …   New thesaurus

  • inventory — I (New American Roget s College Thesaurus) n. tally, count; accounting, list; stock, goods, merchandise. See store. II (Roget s IV) n. 1. [A list] Syn. stock book, itemization, register; see catalog , file 2 , index 2 , list , record 1 , t …   English dictionary for students

  • reserve — Synonyms and related words: Indian reservation, abstain, accessible, adjourn, allocate, allot, aloofness, alternate, alternative, aplomb, appoint, appropriate to, archives, assign, assign to, auxiliary, available, avoidance, backlog, backup,… …   Moby Thesaurus

  • reserve — I (New American Roget s College Thesaurus) n. restriction, qualification; restraint, caution, reticence, dignity; store, stock. See silence, modesty, economy, taciturnity. II (Roget s IV) n. 1. [A portion kept against emergencies] Syn. savings,… …   English dictionary for students

  • reserve — v 1. husband, hold, withhold, hold back, keep, keep back, conserve, save, save for future use, save for a rainy day; set aside, put aside, put away, lay away, lay by, lay up, stow away, squirrel away, salt away, Sl. sock away; store, stockpile,… …   A Note on the Style of the synonym finder

  • inventory level — amount of stock in inventory, total reserve goods …   English contemporary dictionary

  • reserve aircraft — Those aircraft that have been accumulated in excess of immediate needs for active aircraft and are retained in the inventory against possible future needs. See also aircraft …   Military dictionary

  • reserve — 1. An alternative term for *provision (definitions 1 and 2). 2. Additional amounts of inventory, *money or other items maintained for operational or investment purposes. 3. An alternative term for *retained earnings. 4. The setting aside of… …   Auditor's dictionary

  • Strategic Petroleum Reserve — This article refers to the United States Strategic Petroleum Reserve. For other countries see global strategic petroleum reserves The Strategic Petroleum Reserve (SPR) is an emergency fuel store of petroleum maintained by the United States… …   Wikipedia