Which of the following is part of the reserves?

• A. Deductions and Deposits
• B. Uncollected Subrogation
• C. Loan Amounts
• D. Inventory Costs

Answer: (B)

The correct answer focuses on the concept of reserves, which refer to funds that are set aside to meet future obligations or liabilities. Uncollected subrogation pertains to amounts that are recoverable from third parties for claims already paid out. This aligns with reserve accounting as it reflects amounts that are expected to be received in the future, which could offset current liabilities.

Understanding reserves includes recognizing various forms of receivables or expected recoveries, such as payments from insurance subrogation. This makes it crucial for organizations to account for these expected recoveries within their financial practices, thereby supporting the management of liabilities and financial health.

Other options, while they fall under financial management, do not align with the concept of reserves as closely. Deductions and deposits often relate more to transactional or operational aspects rather than anticipated recoveries for liabilities. Loan amounts typically fall under liabilities rather than reserves, and inventory costs represent operational assets rather than expected recoveries. Thus, uncollected subrogation is the only option that captures the essence of what constitutes reserves in financial terms.