valuation account Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: valuation account
valuation account

item offset against or added to the gross amount of an account to arrive at anetbalance. Examples are the allowance account that is subtracted from trading securities to reduce cost to market value, allowance for uncollectible accounts that is netted against accounts receivable, accumulated depreciation that is deducted from the fixed asset, or bond premium that is added to bonds payable.

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