reserve for contingencies

reserve for contingencies definition - business

reserve for contingencies

A part of retained earnings that are set aside for potential future losses. For example, a firm may establish a reserve account to cover the possibility of losing a lawsuit to which it is a party.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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