valuation account

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Definitions from WordNet

Noun valuation account has 1 sense

valuation reserve, valuation account, allowance, 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
--₁ is a kind of reserve account, reserve fund

Definitions from the Web

Term: Valuation Account

Description:

A valuation account refers to a financial account used to record adjustments made to the value of an asset or liability. It is commonly used in the fields of accounting and finance to track changes in the value of an item.

In accounting, valuation accounts are crucial in ensuring accurate financial statements. These accounts are typically used to realign the book value of assets or liabilities with their fair market value, resulting in a more accurate representation of a company's financial position.

In finance, valuation accounts are often utilized in determining the market value of investments, such as stocks or bonds. By regularly evaluating the worth of these investments, individuals and companies can make informed decisions regarding buying, selling, or holding onto their financial assets.

Overall, valuation accounts play a fundamental role in maintaining the accuracy and integrity of financial records and facilitating informed decision-making in various industries.

Sample sentences:

During the year-end audit, the accountant adjusted the value of the company's equipment using a valuation account.
The valuation account for goodwill helped reflect the true value of the company's intangible assets.
Investors rely on valuation accounts to track the market value of their portfolios and make investment decisions accordingly.