In this paper, we discuss the concept of a reservoir in thermodynamics and its determining role in defining entropy flow, entropy generation, lost work, heat, and work. Also, a relation equivalent to that of Clausius is established, which explains why the statement ‘the entropy generation for an irreversible engine is given by the lost work divided by the lowest temperature reservoir’ is flawed, although such a statement is recognized in the literature. Addressing issues that are virtually absent from the literature, this study is expected to be mainly relevant from a scientific point of view but can also be educationally useful.