what is the difference between bonus reserve and bonus expense
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Answer / Viveka Nand Shukl
A Bonus Reserve represents a set aside of funds to pay out bonuses in the future. It's an account used for accumulating funds over time, typically during profitable periods, to cover bonus payments during less profitable times. A Bonus Expense, on the other hand, is an immediate charge against revenue for expenses related to bonuses paid out during the current accounting period.
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