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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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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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