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Simple English definitions for legal terms

amortization reserve

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A quick definition of amortization reserve:

An amortization reserve is a type of account used for bookkeeping purposes to gradually pay off a debt over time. It is like setting aside money each month to pay off a loan. Other types of reserves include a bad-debt reserve, which covers losses on uncollectible accounts, and a legal reserve, which is the minimum amount of money a bank or insurance company must keep on hand by law to meet customer demands.

A more thorough explanation:

An amortization reserve is a type of reserve account created for bookkeeping purposes to gradually extinguish an obligation over time. It is often used in accounting to spread out the cost of an asset over its useful life.

For example, a company may purchase a piece of equipment for $10,000 that has a useful life of 5 years. Instead of recording the entire cost as an expense in the year of purchase, the company can create an amortization reserve and gradually reduce the value of the asset over the 5-year period. This allows the company to more accurately reflect the true cost of the asset over its useful life.

Other types of reserve accounts include:

  • Bad-debt reserve: A reserve to cover losses on uncollectible accounts receivable.
  • Legal reserve: The minimum amount of liquid assets that a bank or an insurance company must maintain by law to meet depositors' or claimants' demands.
  • Loss reserve: An insurance company's reserve that represents the estimated value of future payments, as for losses incurred but not yet reported.
  • Policy reserve: An insurance company's reserve that represents the difference between net premiums and expected claims for a given year.
  • Required reserve: The minimum amount of money, as required by the Federal Reserve Board, that a bank must hold in the form of vault cash and deposits with regional Federal Reserve Banks.

Overall, reserve accounts are used to set aside funds for future obligations or losses. They help companies and organizations manage their finances and ensure they have enough resources to meet their commitments.

a morte testatoris | amortization schedule

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TGM
18:41
(Course marked as Incomplete that’s supposed to be removed)
TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
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true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
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