capital reserve


An account specifically dedicated to the setting aside of capital for long-term or large scale projects. Capital reserve accounts are maintained separately on a company's balance sheet, so that capital can be accumulated for future projects without being expended on other priorities or expenses.

Use capital reserve in a sentence

You should always try to keep a capital reserve account so that you have something left just in case you need it.

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The capital reserve account was really cool and we were all really glad to be able to keep our eye on it and see how we were doing.

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When figuring out their budget, they knew they would have to allocate a large amount towards capital reserve since they had so many long term projects.

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