Real Estate Investment Trust (REIT)
A Real Estate Investment Trust (REIT) operates as a company that owns, operates, or finances income-producing real estate, allowing individual investors to earn a share of the income produced through commercial real estate ownership, without actually having to buy, manage, or finance any properties.
Real Estate Investment Trust (REIT)
A Real Estate Investment Trust (REIT) is a company resident in the UK that owns at least three properties let to third parties and distributes at least 90% of its profits to shareholders. REITs are exempt from UK corporation tax, and distributions are taxed as rental income to shareholders.
Real Estate Limited Partnership
A Real Estate Limited Partnership (RELP) is a form of limited partnership that invests in real estate properties, allowing the income and potential profits to pass through to the limited partners while being managed by a general partner.
Real Estate Market
The real estate market refers to the potential buyers and sellers of real property at the current time, as well as the current transaction activity for real property. This includes markets for various property types, such as housing market, office market, condominium market, land market.
Real Estate Mortgage Investment Conduit (REMIC)
A Real Estate Mortgage Investment Conduit (REMIC) is a pass-through entity designed to issue multiclass mortgage-backed securities, adhering to qualifications established under the Tax Reform Act of 1986 to avoid double taxation.
Real Estate Mortgage Investment Conduit (REMIC)
A Real Estate Mortgage Investment Conduit (REMIC) is a special purpose vehicle (SPV) designed to pool mortgage loans and issue mortgage-backed securities (MBS).
Real Estate Owned (REO)
Real Estate Owned (REO) refers to property acquired by a lender, typically a bank or other financial institution, through foreclosure. This property is then held in the lender's inventory and goes through an asset management process to either sell it off or put it into productive use. REOs are common outcomes of non-performing loans which lead to foreclosure actions.
Real Estate Owned (REO)
Real Estate Owned (REO) refers to properties that have been repossessed by lenders, typically banks, following a foreclosure sale where the property did not sell at auction, thus becoming part of the bank's inventory.
Real Estate Settlement Procedures Act (RESPA)
The Real Estate Settlement Procedures Act (RESPA) is a federal law that governs how mortgage lenders must treat applicants for federally-related real estate loans on properties with one to four dwelling units. It aims to provide borrowers with comprehensive knowledge, enabling informed comparison shopping for mortgage money.
Real Estate Settlement Procedures Act (RESPA)
The Real Estate Settlement Procedures Act (RESPA) is a federal law that regulates the real estate settlement process to protect consumers from abusive practices and ensure fair and transparent transactions.
Real Estate Transaction
A real estate transaction entails a sale or exchange of reportable real estate for money, indebtedness, or property other than money or services, regardless of whether the transaction is currently taxable.
Real Exchange Rate
A Real Exchange Rate (RER) is an exchange rate that has been adjusted for the effects of inflation, providing a more accurate reflection of a currency's purchasing power.
Real GDP
Real GDP, or Real Gross Domestic Product, measures the value of economic output adjusted for price changes (inflation or deflation).
Real Income
Real income represents the income of an individual, group, or country adjusted for changes in purchasing power caused by inflation. It contrasts nominal income, which is not adjusted for such changes, providing a more accurate representation of economic well-being over time.
Real Interest Rate
The real interest rate is the nominal interest rate adjusted for inflation. It represents the true cost of borrowing and the real yield on investments.
Real Option
A real option is an investment embedded within a project or a business activity that provides the firm with the flexibility to make decisions that can have significant financial implications.
Real Property
Real property encompasses land and anything permanently attached to it, including buildings, trees, and certain rights issuing out of, annexed to, and exercisable within or about the land. It forms an essential part of property law.
Real Purchasing Power
Real Purchasing Power reflects the value of a currency in terms of the quantity of goods and services it can buy, adjusted for inflation. It provides a more accurate measure of financial well-being by accounting for changes in price levels over time.
Real Rate of Interest
The rate of interest charged for the use of financial resources adjusted for the effect of the inflation rate within an economy.
Real Rate of Return
The Real Rate of Return is an investment's annual percentage profit that is adjusted for changes in prices due to inflation or other external factors. Unlike the nominal rate of return, which does not account for inflation, the real rate of return provides a more accurate measure of purchasing power.
Real Terms
A representation of the value of a good or service in terms of money, taking into account fluctuations in the price level.
Real Terms Accounting (RTA)
Real Terms Accounting (RTA) is a system of accounting where the effects of changing prices are measured by their impact on a company's financial capital, to ensure its value remains constant in real terms. This involves assessing assets at their current cost and defining profit as any surplus after maintaining shareholders' equity.
Real Terms Accounting (RTA)
Real Terms Accounting refers to an accounting method that adjusts financial statements for inflation to reflect the real value of money over time, providing a more accurate representation of an entity's financial position.
Real Value of Money
The real value of money refers to the actual purchasing power of money as corrected for inflation over time.
Real Wages
Real wages refer to money wages that have been adjusted for inflation, providing a measure of the actual changes in purchasing power over time.
Real-Time Processing
Real-time processing involves the immediate processing of data and information requests with minimal delay, while updating the relevant database simultaneously. This requires advanced computational power and sophisticated application software.
Realizable Account
A realizable account is an account prepared when a partnership is dissolved. It accounts for the assets of the partnership, expenses on realization, and proceeds from sales, with the resulting profit or loss shared between the partners according to their profit-sharing ratio.
Realizable Assets
Realizable assets, often referred to as liquid assets, are assets that can be quickly converted into cash with minimal impact on their value.
Realization Convention
The general basis used in financial statements prepared under historical-cost accounting in which increases or decreases in the market values of assets and liabilities are not recognized as gains or losses until the assets are sold or the liabilities are paid.
Realized Gain
A realized gain represents the profit earned from the sale of an asset, calculated as the difference between the asset's selling price and its original purchase price. This gain, although realized, is not always immediately subject to taxation.
Realized Profit/Loss
Realized profit or loss refers to the profit or loss that has arisen from a completed transaction, typically the sale of goods, services, or other assets. It is recognized legally once the transaction is finalized, regardless of whether cash has been received.
REALTIST
A REALTIST is a member of the National Association of Real Estate Brokers (NAREB), which primarily comprises minority brokers dedicated to promoting fair housing and equal opportunities in real estate.
REALTOR
A professional in real estate who subscribes to a strict code of ethics as a member of the local and state boards and the National Association of Realtors.
Realty
Realty, also known as real estate, encompasses land and the buildings on it, as well as natural resources like crops, minerals, or water. It involves various facets such as acquisition, sale, management, and legal transactions concerning properties.
REAM
The term 'ream' can refer to both a package of paper and an action meaning to bore a hole or metaphorically achieve a significant victory.
Reappraisal Lease
A reappraisal lease is a type of lease agreement where the rental level is periodically reviewed by independent appraisers to ensure the lease payments reflect the current market value.
Reasonable Care
A legal standard used to determine the degree of care a reasonably prudent person would exercise in specific circumstances. Often crucial in tort cases, it helps to determine liability in scenarios involving potential negligence.
Reasonable Man / Reasonable Person
A hypothetical individual in society who exhibits prudent attention, knowledge, intelligence, and judgment for the protection of their own interests and the interests of others.
Reasonable Time
The term 'reasonable time' refers to a subjective standard based on the facts and circumstances within a particular case, with applicability in a variety of legal contexts, especially in commercial law.
Reassessment
Reassessment involves reviewing and updating a policy or a decision, often used in the context of real estate to revise property value estimates for tax purposes.
Rebate
Rebates can serve as powerful tools for boosting sales, incentivizing customer loyalty, and offering economic relief through various forms of refunds, making them an essential concept in both business and personal finance.
Reboot
Reboot refers to the process of restarting a computer system, which involves turning it off and then turning it on again. This procedure can resolve various system issues and refresh the operating environment.
Recall
A recall is an action taken by a manufacturer to remove a defective product from the market that could potentially cause harm or does not meet regulatory standards. The recall process involves notifying customers and arranging for the return, repair, or replacement of the product. This corrective action can be initiated voluntarily by the manufacturer or mandated by government authorities, particularly when safety concerns are involved.
Recall Campaign
A coordinated advertising effort by a manufacturer to notify all owners of a particular product that it should be returned to the manufacturer. It can include mass-media advertising as well as direct mailings.
Recall Study
A recall study is an investigation conducted by a manufacturer or governmental authority to assess the necessity of recalling a product due to defects or safety issues. This process evaluates if the defect is isolated or widespread and determines actions such as returning, repairing, or replacing the product.
Recapitalization
Recapitalization involves altering the mix of debt and equity financing in a company without changing the total amount of capital.
Recapture
Recapture is the process of taxing at ordinary rates the portion of the gain on a sale that represents prior depreciation allowances or prior tax credits, thereby increasing the taxable income of the seller.
Recapture Clause
A recapture clause in a contract permits the party who grants an interest or right to reclaim it under specified conditions.
Recapture of Depreciation
The recapture of depreciation is a tax provision that allows the IRS to tax the portion of gains on the sale of property that represents 'excess' depreciation.
Recapture Rate
In appraisal terminology, the recapture rate is the rate of recovery of an investment in a wasting asset. This rate is added to the discount rate to derive a capitalization rate.
Recapture Rule
The Recapture Rule requires the repayment of tax benefits like depreciation and investment tax credits claimed earlier if specific conditions are not met in subsequent years.
Recasting a Debt
Recasting a debt refers to the process of adjusting the terms of an existing loan arrangement, often undertaken to prevent default or alleviate financial hardship. This can include modifying the payment schedule, extending the loan term, or lowering the interest rate.
Receipt, Receipt Book
Details about the functionalities and importance of receipts and receipt books typically used in business transactions to provide proof of payment and maintain records.
Receipts and Payments Basis
An accounting method that records transactions based on the actual receipt or payment of cash rather than when the transaction occurs.
Receivables
Receivables represent the amount of money owed to a business by its customers for goods or services delivered or used but not yet paid for. These are current assets recorded on the balance sheet, reflecting the business's right to receive payment.
Receivables Aging Schedule
A Receivables Aging Schedule is an accounting table that shows the amounts due from customers broken down by their aging period. This tool helps businesses monitor outstanding invoices and evaluate the effectiveness of their credit and collections processes.
Receivables Turnover
The receivables turnover ratio measures how efficiently a company collects its average accounts receivable over a specific period. It indicates the number of times average accounts receivable are collected in a year.
Receiver
A receiver is an individual appointed to manage the property, assets, or business operations of an entity during bankruptcy or other legal proceedings. The specific powers and duties of a receiver can vary based on the type of receivership.
Receivership
Receivership is a process where an appointed receiver manages a company's assets to repay debt owed to a lender due to the company's default or insolvency.
Receiving Clerk
A receiving clerk plays a crucial role in a firm's logistics by inspecting, verifying, and recording all incoming goods to ensure accurate inventory management and quality control.
Receiving Record (Report)
A comprehensive document created for each shipment received by a company, containing detailed information used for verification and accounting purposes.
Recession
A downturn in economic activity, defined by many economists as at least two consecutive quarters of decline in a country's Gross Domestic Product (GDP).
Reciprocal Buying
Reciprocal buying is a practice where a seller of a product or service also purchases another product or service from one of their customers, creating a mutually beneficial relationship.
Reciprocal Costs
Reciprocal Costs involve the apportionment of costs between service cost centers and production cost centers in a mutually interactive manner. This ensures that the costs of support services are accurately allocated to the production activities, allowing for precise cost control and financial analysis.
Reciprocity
Reciprocity refers to a mutual relationship between individuals, corporations, states, or countries where privileges or advantages granted by one party are returned by the other.
Reckoning
Reckoning involves settling accounts through detailed counting and computations to achieve a final total or conclusion.
Recognition
Recognition is the procedure used to incorporate an accounting item into the financial statements of an organization. This process is not only essential for capturing revenue and expenditure items but has also become increasingly crucial for the proper treatment of off-balance-sheet finance.
Recognized Gain
In the context of tax-free exchanges, a recognized gain is the portion of a gain that becomes taxable. While a realized gain represents the total profit from the sale or exchange of an asset, the recognized gain is the part that the IRS considers taxable income.
Recognized Professional Body (RPB)
A Recognized Professional Body (RPB) is an organization that meets specific regulatory criteria to oversee the conduct and practice of professional accountants, providing members with the necessary accreditation and compliance guidelines to ensure high standards within the accounting profession.
Recognized Professional Body (RPB)
A Recognized Professional Body (RPB) refers to a professional organization that has been granted recognition by a governing authority to oversee and regulate specific professional standards and practices.
Recognized Qualifying Body (RQB)
In the UK, a Recognized Qualifying Body (RQB) is an authorized organization permitted to issue accounting qualifications. There are six currently recognized bodies, each providing accredited certifications to accounting professionals.
Recognized Supervisory Body (RSB)
In the UK, a Recognized Supervisory Body (RSB) is a body recognized as supervising and maintaining the conduct and technical standards of auditors performing statutory audits.
Recognized Supervisory Body (RSB)
A Recognized Supervisory Body (RSB) plays a pivotal role in maintaining the standards of the accounting profession by overseeing the conduct and quality of auditors and accounting professionals within a regulatory framework.
Recompense
The act of paying or rewarding an individual for services, or remuneration for goods or other property.
Reconciliation
Reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. It is used to ensure the accuracy and consistency of financial records.
Reconciliation of Movements in Shareholders' Funds
A financial statement summarizing the performance of an organization during a financial period, covering recognized gains and losses, dividend payments, and capital changes in shareholders' equity. Essential under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
Reconsign
Reconsign refers to the process of changing the destination or consignee of freight while it is in transit. This often occurs to accommodate changes in supply chains or to correct delivery errors.
Recontracting
Recontracting is the renegotiation of contracts between a company in financial distress and its creditors to establish more favorable terms.
Reconveyance
Reconveyance is a process in which a lender transfers the title of a property back to the borrower once the mortgage debt is fully paid off. This legal document ensures the borrower's ownership of the property is unencumbered by the lender’s lien.
Record
In data processing, a record refers to a collection of related data items stored together. Each record contains fields that represent different pieces of related information.
Record Date
The record date, also known as the date of record, is a critical date set by a company upon which shareholders must be on the corporation's books in order to receive the benefits of a corporate action, such as a dividend payout or stock split.
Recording
Recording refers to the act of entering a transaction in a book of public records, particularly those affecting the title to real property. This process gives public notice of the facts recorded.
Records Management
Records Management refers to a system used to collect, record, store, and eventually discard information. Effective records management ensures that information is correctly managed throughout its lifecycle, supporting compliance, operational efficiency, and risk management.
Recoup, Recoupment
Recoupment refers to the process of regaining or recovering losses, typically through legal means, compensation, or adjustments of accounts, often seen in various fields such as accounting, business law, and insurance.
Recourse
Recourse refers to the right of redress or compensation if the terms of a contract are not fulfilled. It provides protection to the party to whom the obligation is owed by enabling them to claim against the other party or seek recovery from collateral if necessary.
Recourse Loan
A recourse loan is a type of loan in which the lender has the right to pursue the borrower's other assets beyond the collateral if the borrower fails to meet the repayment terms.
Recoverable Amount
The recoverable amount represents the value of an asset that is treated as the greatest of its net realizable value and its value in use.
Recovered Overhead
An accounting term related to overhead costs that have been recovered or anticipated to be recovered through cost allocation.
Recovery
The term 'recovery' in various fields refers to the period when economic activity picks up after a downturn, absorption of costs or collections in finance, and rising prices in investment markets.
Recovery Fund
A recovery fund is a financial safety net for aggrieved persons in the real estate sector who are unable to collect from brokers for wrongdoings. Funded by licensee contributions, it is generally administered by a state Real Estate Commission.
Recovery of Basis
The process by which a taxpayer receives a return of cost through distributions or payments with respect to a property. A recovery of basis is generally nontaxable if it follows a taxable distribution of earnings and profits from a corporate liquidation.
Recovery Rate
The recovery rate is a measurement in finance that represents the extent to which principal and accrued interest of defaulted debt are reclaimed by a creditor. It is a crucial metric for risk assessment and investment decision-making in the realm of distressed securities and defaulted bonds.
Recruiters
Recruiters are professionals responsible for sourcing and acquiring new employees for an organization, typically through a variety of methods such as advertising campaigns, job fairs, and referrals. They play a vital role in the talent acquisition process.
Recruitment
The process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees for an organization. Recruitment is essential for sustaining an organization's workforce and ensuring its growth and development.
Recruitment Bonus
A recruitment bonus is a monetary incentive provided by employers or employment agencies to those who help find qualified candidates for job positions, particularly in fields experiencing a shortage of skilled professionals.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.