Accountants Use Reserve Accounts for Various Reasons, for Each of the Scenarios

Essay

Accountants use reserve accounts for various reasons, for each of the scenarios below describe a specific account example that matches the scenario.
1. The use of a reserve account in order to match expense with revenues.
2. The use of a reserve account in order to keep expense out of the income statement.
3. The use of a reserve account in order to revalue an asset, but delay the income recogrition effect