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reserve account vs allowance account

allowance account vs reserve account

reserve account and allowance account both are nouns.

Word NounAdjectiveVerbAdverb
reserve account Yes No No No
allowance account Yes No No No
As nouns, allowance account is a hyponym of reserve account; that is, allowance account is a word with a more specific, narrower meaning than reserve account:
  • reserve account: funds taken out of earnings to provide for anticipated future payments
  • allowance account: a reserve fund created by a charge against profits in order to provide for changes in the value of a company's assets
Other hyponyms of reserve account include hidden reserve, pool, allowance, valuation account, valuation reserve, revaluation reserve.
reserve account (noun) allowance account (noun)
funds taken out of earnings to provide for anticipated future payments a reserve fund created by a charge against profits in order to provide for changes in the value of a company's assets
Difference between reserve account and allowance account

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