Reserve accounting refers to the allocation of funds to reserves rather than processing them through the profit and loss account. This method might be used in specific instances, such as making prior-period adjustments.
In Marxist theory, the large number of unemployed whose existence assures that wages will be kept at minimum levels.
Reserve assets are financial instruments that a central bank or a government holds to implement monetary policy and ensure financial stability. These assets are crucial for maintaining liquidity, managing exchange rates, and backing up domestic currency.
Reserve for Depreciation, also known as Accumulated Depreciation, is an accounting term used to describe the total amount of depreciation that has been expensed against an asset's value over time. It reflects the reduction in an asset’s book value due to wear and tear, age, or obsolescence.
A reserve fund in real estate refers to an account maintained to provide funds for anticipated expenditures required to maintain a building. It may also serve as an escrow to pay upcoming taxes and insurance costs.
In accounting, a reserve refers to a part of a company's capital, other than its share capital. This capital can largely arise from retained profits or from the issuance of share capital at more than its nominal value. Reserves differ from provisions as they represent undistributed surpluses, with some being non-distributable. Directors may earmark these funds for specific purposes.
The accrual of bad-debt expense based on the projected worthlessness of receivables or prior experience with uncollectible receivables. The reserve method is permitted only for some small banks and thrift institutions with assets of $500 million or less, while other accrual taxpayers must use the specific charge-off method.
The reserve price is the minimum amount a seller is willing to accept for an item at auction. If bids do not reach this amount, the seller is not obligated to sell.
Understanding the Federal Reserve System's rule mandating the financial assets that member banks must keep in the form of cash and other liquid assets as a percentage of demand deposits and time deposits.
Reserve-stock control is a technique designating appropriate inventory levels for the maintenance of business operations until new merchandise can be supplied. It considers the length of time necessary to physically replenish needed inventory.
International reserves are holdings of foreign currencies and other assets that central banks use to manage currency values and balance payments between countries.
Reset bonds are bonds issued with a provision that on specified dates, the initial interest rate must be adjusted so that the bonds trade at their original value.
In the context of taxation and real estate, a residence refers to a place where someone lives. It can be classified into various types including personal residence, principal residence, and qualified residence.
A resident is an individual or company that is considered to be based in the UK for taxation purposes, determined by specific criteria set by HM Revenue and Customs (HMRC).
A person who has been admitted to permanent resident status but has not been granted citizenship; often referred to as a 'Green Card' holder.
A resident buyer is an individual who has an office in an important merchandise center and provides valuable merchandising information.
A resident manager supervises the care and maintenance of an apartment complex while residing in one of its units. Their responsibilities include showing vacant units to prospective tenants, ensuring the building's cleanliness, and providing access to repair personnel.
A residential broker is a real estate professional who specializes in listing and selling houses or condominiums. They aid clients in buying, selling, or renting residential properties.
A Residential District refers to a district or an area designated specifically for people to live in. In contrast to commercial or industrial areas, residential districts are largely occupied by housing and are subject to specific zoning laws laid out in zoning maps.
A residential mortgage is a loan secured against a residential property, such as a house or apartment, primarily used for the borrower's personal housing needs. It allows individuals to finance the purchase of a home by gradually paying off the debt over an agreed period.
In real estate brokerage terminology, residential property refers to owner-occupied housing. These can range from single-family homes to larger multi-family units like duplexes and apartment buildings.
Residential property refers to real estate designated for human habitation, including both single-family homes and multi-family buildings. These properties are typically zoned for private living and can encompass houses, apartments, townhouses, and condominiums.
Residential rental property refers to rental units utilized for dwelling purposes, excluding transient lodging like hotels or motels. To qualify as residential for income tax purposes, at least 80% of a building’s income should come from dwelling units. This type of property is eligible for a 27½-year life for tax depreciation purposes, compared to a 39-year life for nonresidential property.
A Residential Service Contract, often referred to as a home warranty, is an insurance policy that typically covers the plumbing, mechanical, and electrical systems of a home for one year. It is commonly offered at the purchase of an existing home and can be paid for by either the buyer or the seller.
Residual Equity Theory emphasizes the rights and interests of ordinary shareholders, viewing them as the real owners of a business. It reflects in earnings per share, aiding shareholder investment decisions. This theory positions itself between the proprietary view and the entity view of a company.
Residual income is the net income generated by a subsidiary or division after accounting for the costs associated with the capital it uses. This metric is particularly useful in determining the profitability and efficiency of investment projects within larger organizations.
Residual value, also referred to as disposal value or net residual value, represents the expected proceeds from the sale of an asset, net of the costs of sale, at the end of its estimated useful life.
A binding decision made by the members of a company, either via voting at a general meeting or by unanimous informal consent, as recognized under UK company law and stipulated in the Companies Act or company articles.
Resources include money, people, time, and equipment necessary for any organization. Resource allocation is a key part of a manager's decisional roles.
Resource allocation refers to the process of distributing available resources to various projects, departments, or business units to achieve organizational objectives efficiently.
Respondeat Superior is a doctrine in agency law that holds a principal liable for the acts of an agent. This principle is crucial in determining liability and legal responsibility in various business and professional relationships.
In legal terms, a 'respondent' is the party sued in an action at law. In a general context, a 'respondent' is someone who answers a survey.
Response projection is a forecasting method used in marketing to estimate the total expected responses to a promotion, based on the number of responses received so far or previous experiences with similar promotions or product lists.
Commitments and duties associated with a position in an organization. The manner in which responsibilities are fulfilled determines overall organizational effectiveness and productivity.
A system in management accounting designed to provide information to all levels of an organization, based on the responsibility of individual managers for specific items of expenditure or income.
A responsibility centre is a designated section within an organization where costs and income are tracked and assigned to a specific manager. This assignment ensures accountability and efficient financial management.
Correction of a previously issued financial statement due to an accounting irregularity or misrepresentation. While restatement can result from honest error, the practice gained notoriety during the wave of corporate scandals in the early 2000s.
Restitution refers to the act of compensating for loss, damage, or injury by making the affected party whole, either through monetary compensation or other forms of reparation.
A restraining order is a legal order issued by a court without prior notice or need for a hearing, demanding the preservation of the status quo until a formal hearing can be conducted to determine the need for injunctive relief, either temporary or permanent. Commonly referred to as a Temporary Restraining Order (TRO).
Restraint of trade encompasses illegal practices that interfere with free competition in commercial transactions, which may restrict production, influence prices, or control the market to the detriment of consumers.
A restraint on alienation refers to a restriction on the ability to convey real property interests. Such restrictions often infringe on the common law policy that favors the free transferability of property.
Restricted securities are securities acquired from an issuer in a nonpublic transfer that have sales limitations because they were not part of a public offering and didn't adhere to the Securities Act of 1933.
Shares in a company typically granted to select employees under specified conditions, such as tenure or performance targets, often employed as an alternative to share option schemes.
A restricted surplus refers to the portion of shareholders' equity that is not available for dividend distribution to shareholders, often due to legal or regulatory requirements.
A specification that limits the use or enjoyment of property or rights, often found in real estate dealings, legal documents, and contracts.
A restrictive covenant is a clause, which can either restrict the freedom of an individual or entity in a business agreement or affect the usage of land, thereby setting specific limitations and obligations.
Restructuring involves reorganizing the composition and operations of an organization, which can result in significant changes, including the elimination or replacement of departments and divisions, and potentially causing temporary or permanent layoffs.
A résumé is a concise statement of one's background, education, and work experiences. It serves as a marketing tool aimed at securing an interview for employment.
Retailing involves the business practice of selling products and services directly to the public, targeting the ultimate consumer rather than wholesalers or manufacturers.
Retail credit is credit provided by a retailer to customer for the payment of purchases. It can come in the form of external or in-house credit cards, fostering customer loyalty and facilitating purchase convenience.
A Retail Credit Bureau is a specialized type of credit bureau that focuses on collecting and maintaining consumer credit information specifically related to retail transactions and credit accounts.
A retail display allowance entails a reduction in the amount due from a retailer to a manufacturer in exchange for granting more prominent display space to the manufacturer's products in the retailer's store or on shelf.
The Retail Inventory Method is an inventory valuation technique used within the cost method of accounting, where similar merchandise is pooled to estimate the average percentage of cost to retail price.
A retail outlet is a manufacturer-owned store that sells merchandise and/or services directly to the public in unlimited quantities.
An index reflecting the prices of goods and services in retail shops purchased by average households, calculated relative to a base year. The RPI is a key economic indicator published monthly by the Office for National Statistics.
The Retail Price Index (RPI) is a measure of inflation published monthly by the UK government. It indicates the rate of price change for a fixed basket of goods and services, which reflects the spending habits of households.
The retail rate is a media advertising rate offered to local retailers for the purpose of promoting their goods and services through various media channels.
Monthly data that track U.S. sales, changes from previous periods, and areas where sales rose or fell. This metric measures personal consumption across retail industries, excluding autos, and tracks consumer spending trends.
Retailer schemes offer various methods for retailers to efficiently manage and report taxable supplies, ensuring compliance with VAT regulations.
Advertising, promotion, or similar sales enhancement services designed specifically to help independent retailers be more competitive by providing cooperative advertising, display material, and/or advertising layouts.
Retainage refers to a portion of a contractor's payment that is withheld by the client until the project's completion or another specified date to ensure work quality and project satisfaction.
Retained Earnings, also known as retained profits, ploughed-back profits, or retentions, represent the portion of net profit remaining after distribution to shareholders. This amount is retained within the company for reinvestment purposes.
Retained earnings refer to the portion of a company's profit that is held back and not distributed to shareholders as dividends. These earnings are reinvested in the business for growth, debt reduction, or other corporate purposes.
A statement that provides a reconciliation of the beginning and ending balances in the retained earnings account on a company's balance sheet.
An account used to indicate that a portion of retained earnings is not available for dividends but is earmarked for specific purposes.
A retainer is a payment made in advance to a service provider, entitling the client to specific services or guaranteeing the provider's availability for service needs at a future time. Commonly used by attorneys and consultants.
Retaliatory eviction refers to the act of a landlord forcing a tenant to vacate a rental unit in response to complaints from the tenant about the condition of the property. This practice is illegal in many jurisdictions under landlord-tenant laws.
Retirement involves withdrawing, leaving, or departing from a particular activity or situation, often referring to the conclusion of one's career.
Retirement is the act of leaving active employment permanently, with income for the remaining years of life typically coming from sources such as Social Security, pensions, and personal savings.
Retirement age is the designated age at which an individual becomes eligible to retire and begin receiving retirement benefits. This can include several variations such as normal, early, deferred, and automatic retirement.
A retirement fund is a sum of money specifically reserved by an organization for retiring employees. The investment of retirement funds is increasingly significant in the stock market and is regulated by federal laws such as the Employee Retirement Income Security Act (ERISA) of 1974.
Retirement income refers to the various sources of funds that a retired individual receives, which can include Social Security benefits, pensions, annuities, and investment income. This income is critical for maintaining an individual's lifestyle once they are no longer earning a regular paycheck.
A retirement plan is a financial arrangement provided by an employer or a self-employed individual that aims to replace employment income upon retirement. Due to tax advantages, they generally allow for present deductions to employers and deferred income recognition for employees.
Retroactive refers to any policy, payment, or legal effect applied to a prior time period. For instance, retroactive pay can be granted based on the provisions of a new collective bargaining agreement for work completed before or at the start of the new contract's implementation.
Retroactive adjustment refers to the process of restating prior years' financial statements to present financial data on a comparable basis as necessitated by accounting error corrections, changes in accounting principles, or other significant financial recalibrations.
Return can have varied meanings in different contexts, including finance, investment, retailing, taxes, and trade. Generally, it refers to profits, exchanges, and refunds or credits, often associated with securities, merchandise, or taxpayer information.
A return of capital refers to a distribution from a corporation to its shareholders that is not paid out of the corporation's earnings and profits. It represents a return of the shareholders' investment in the stock of the company.
Return on Assets (ROA) is an accounting ratio that measures the amount of profit generated during an accounting period as a percentage of the assets held by a company. It provides insights into how efficiently a company is utilizing its assets to produce profit.
Return on Capital Employed (ROCE) is an accounting ratio that measures an organization's profitability and efficiency in using its capital. It is expressed as a percentage of profit relative to the capital employed.
Return on Capital Employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed.
Return on Equity (ROE) is a financial metric that assesses a company's ability to generate profit from its shareholders' equity. It is calculated by dividing net income by shareholders' equity.
Return on Equity (ROE) is a measure of financial performance, determined by dividing net income by shareholders' equity. ROE is an essential metric for evaluating a company's profitability and efficiency in generating profits from its equity.
Return on Invested Capital (ROIC) is a profitability ratio that assesses how efficiently a company uses its total capital—including common and preferred equity as well as long-term funded debt—to generate profits.
Return on Investment measures the profitability of an investment. It is a ratio that compares the gain or loss from an investment relative to its cost.
Return on Investment (ROI) measures the profitability of an investment, calculated as the net profit from an investment divided by the original cost of the investment, usually expressed as a percentage.
ROI measures the gain or loss generated on an investment relative to the amount of money invested.
Return on Sales (ROS) is a key financial performance metric that calculates net pre-tax profits as a percentage of net sales, serving as a useful measure of overall operational efficiency compared with prior periods or other companies.
In business, the term 'returns' can refer to responses generated by direct-mail promotions or merchandise returned to a supplier for credit. Returns are a critical aspect in both marketing and supply chain operations.
Returns inwards, also known as sales returns, refer to goods returned to an organization by customers. These returns typically occur due to dissatisfaction with the product, whether due to defects, wrong shipments, or simply buyer's remorse.
Understanding the returns inwards book is crucial for effective bookkeeping as it helps track the goods returned by customers and impacts various ledger accounts.
Goods returned by an organization to its suppliers, typically due to dissatisfaction with the items received. This process helps manage inventory and ensures only acceptable goods are procured.
A Returns Outwards Book, also known as the Purchase Returns Book, is a book of prime entry utilized to record any returns of goods to suppliers. It ensures systematic tracking of returned items, allowing accurate updates to individual creditor's accounts and overall accounting records.
Returns to scale refer to how the change in production output responds to a proportional change in all input factors. It is crucial in understanding the efficiency and scalability of production processes.
Revalorization of currency involves replacing one currency unit with another to counteract the effects of frequent or significant currency devaluation, often associated with high inflation rates.
Revaluation involves increasing the value of an asset to reflect its current market value, where the asset cost account is debited and the revaluation reserve is credited.
In a partnership, the revaluation account captures changes in the value of assets and liabilities when a new partner is admitted, or an existing partner exits. It ensures that these adjustments are equitably shared according to the partnership agreement.
The revaluation clause, also referred to as a reappraisal lease, is a provision in a lease agreement that allows for periodic reassessment of the rental value of the leased property. This clause is often used to ensure that rental payments reflect the current market value of the property, protecting the interests of both the landlord and the tenant.
A method of determining the depreciation charge on a fixed asset against profits for an accounting period by revaluing the asset each year and writing off the fall in value.
A process usually undertaken by a government to increase the value of its currency in terms of gold or other currencies, typically to address a balance of payments surplus.
Revaluation of Fixed Assets refers to the process of re-assessing the value of a company's capital assets, either because they have increased in value or due to inflation rendering balance-sheet values unrealistic. This accounting practice is crucial for presenting accurate financial statements.
