Absorption costing is a methodology used to allocate all manufacturing costs to the production units. It is generally used in traditional costing systems.
An accounting period is a standardized time frame for tracking and reporting a company's financial performance and tax obligations. Commonly used in financial statements, accounting periods are vital for consistency and comparison.
Accounting records are the documentation used to prepare, verify, and audit the financial statements of a company. They provide a detailed account of all financial transactions, assets, liabilities, equity, revenues, and expenses.
Audit rotation is the policy of appointing an audit firm for a set period only, after which a different firm must be employed. This practice aims to prevent the renewal of audits from influencing conduct and ensure auditor independence. However, it faces criticism for cost implications, disruption, and potentially reduced audit quality.
An auditors' report provides an independent opinion on the fairness and accuracy of a company's financial statements, central to ensuring transparency and integrity in financial reporting.
Average Revenue is the amount of money received by a firm per unit of output sold. It is calculated by dividing the total revenue by the quantity of goods sold.
Capital gains refer to the profit realized from the sale of assets or investments, which exceeds the purchase price. They can apply to stocks, bonds, real estate, and other types of investments.
The Coefficient of Determination, denoted as R^2, measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s). It is commonly used in the context of regression analysis to determine how well the model fits the data.
Cross merchandising refers to the practice of displaying items from different product categories together in order to drive additional sales and enhance the overall shopping experience.
Depreciable real estate refers to property used in a trade or business, or held for investment purposes, which is subject to depreciation under Section 167 of the Internal Revenue Code. Typically, land itself is not depreciable; however, land with minerals may be subject to depletion.
An exchange rate is the price of one currency in terms of another currency. It is a crucial element in the global economy, impacting international trade, investments, and the purchasing power of consumers.
The Financial Reporting Review Panel (FRRP) monitors the accounting practices of public and large private companies in certain jurisdictions to ensure compliance with legal and regulatory financial reporting requirements.
Full retirement age is the age at which a person may first become entitled to full or unreduced retirement benefits. It varies depending on the year of birth, and understanding this concept is crucial for effective retirement planning.
A General Retirement System encompasses all mechanisms and financial arrangements designed to provide individuals with income or benefits during their retirement years. These systems often include pensions, social security, and personal retirement savings plans.
HM Revenue and Customs (HMRC) is the UK government department responsible for the care, management, and collection of direct and indirect taxes, National Insurance contributions, and customs and excise duties within the UK. It was established from a merger of the Board of Inland Revenue and the Board of Customs and Excise in April 2005.
A leaseback transaction involves a property owner selling the property and then leasing it back from the buyer. This allows the original owner to continue using the property while receiving an influx of capital from the sale.
Net Realizable Value (NRV) is the net amount that an entity expects to realize from the sale of an asset after deducting any costs involved in its sale or disposal.
An irrevocable trust used to fund deferred compensation benefits for key employees in the absence of a qualified plan or trust, ensuring some financial security against company risks.
Merchant wholesalers providing merchandise and rack displays at retail locations. Rack jobbers own the merchandise and work cooperatively with retailers in terms of sharing profits, thus relieving the retailer of the need to acquire merchandise while allowing them to benefit from the sale of the merchandise.
An activity designed for the purpose of achieving gains, often involving extortion or the sale of illegal substances or services. Racketeering is an organized conspiracy to accomplish such activities.
The Racketeer Influenced and Corrupt Organizations Act (RICO) is a United States federal law enacted in 1970 to combat organized crime. RICO allows for the prosecution of individuals involved in ongoing criminal enterprises, including those indirectly involved.
The Racketeer Influenced and Corrupt Organizations Act (RICO) is a federal law enacted in 1970 designed to combat organized crime in the United States by enabling prosecutors to charge individuals or groups involved in extended criminal enterprises.
Originally known as an organized conspiracy to commit extortion, racketeering today includes various punishable offenses legislated by Congress to eradicate organized crime, offering enhanced sanctions and new remedies for prosecuting illegal activities of those involved in organized crime.
In computing, a radio button is a circular icon in a dialog box that can be clicked with a mouse to select one option among multiple, typically mutually exclusive, options.
RFID is the use of radio signals to recognize, from a few feet away, a tiny device (RFID chip) built into items such as price tags, ID cards, and passports. It is also used for tracking pets through subdermal implants.
A radiogram is a type of message sent by radio, often to and from ships while they are at sea. It is a crucial form of communication in the maritime industry, enabling rapid exchange of information over long distances.
The percentage of cotton fiber content in high-quality paper. The percentage of rag content becomes visible when the paper is held up to light, offering an indication of the paper's quality and durability.
RAG Rating is a system for monitoring and reporting on the progress of a complex, longer-term project using a color-coded scheme to identify areas needing urgent action.
A raider is an individual or organization that seeks to take over a company, often through aggressive strategies and hostile takeover bids, to capitalize on undervalued assets.
The Railroad Retirement Act, a congressional act effective from 1935, provides retirement benefits to retired railroad workers and their families from a dedicated fund separate from the Social Security fund.
Rain insurance is a type of business interruption insurance that indemnifies the insured for loss of earnings and payment of expenses due to adverse weather conditions, particularly rain. This can cover losses from events like fairs, horse races, or boxing matches being rained out, but it does not cover property damage.
Individual who brings significant amounts of new business to a company, such as a law or accounting firm.
A raised check is a type of check on which the amount and possibly other information are raised above the smooth surface of the paper to prevent alteration and ensure security.
A marked rise in the price of a security, commodity future, or market after a period of decline or sideways movement.
Refers to a phase where sales and profits of a new business increase rapidly until a plateau is reached at maturity.
In UK tax law, the Ramsey Principle allows the court to examine a series of connected transactions collectively to ascertain the taxpayer's liability, rather than isolating each individual transaction.
A random sample is a subset of individuals selected from a larger population in such a way that every individual has an equal and independent chance of being chosen.
A random variable is a fundamental concept in statistics used to describe quantities that have no fixed value but instead are subject to variability due to random phenomena.
The Random Walk Theory posits that the movement of stock and commodity futures prices is inherently unpredictable, given that past price movements cannot accurately forecast future price trends.
Random-Access Memory (RAM) is a type of computer memory that can be accessed randomly; any byte of memory can be accessed without touching the preceding bytes. RAM is the most common type of memory used in computers and other electronic devices to store data temporarily that the CPU needs while performing tasks.
Random-Access Memory (RAM) is a crucial component in computers and other digital devices. It is a form of volatile memory that temporarily stores data for quick access, significantly impacting the system's performance and capacity.
Random-Digit Dialing (RDD) is a technique used to generate telephone numbers randomly for survey research, allowing access to both unlisted and listed numbers. It ensures a representative sample by ensuring that every possible number has a chance of being selected.
A program that generates a sequence of numbers that seem to be completely random. Random numbers provide a way of selecting a sample without human bias.
The theory that financial market prices move without any memory of past movements, suggesting that their movements do not follow any predictable pattern.
Range is a key metric used in various fields, such as investment and statistics, to measure the scope of data or price fluctuations within a specific period.
The term 'rank-and-file' refers to the ordinary dues-paying members of a union who are not part of the union's leadership or officials.
Rapport refers to an environment of harmony, consonance, agreement, or accord achieved through activities that encourage mutual understanding and trust. It is especially critical in business relationships where effective communication and positive interactions are key to success.
RAROC, or Risk-Adjusted Return on Capital, is a financial metric used to determine profitability considering the risk taken by a firm. It assesses the returns, adjusted for risk, on the capital invested.
The term 'ratable' refers to something that can be estimated or assessed proportionally, often in the context of taxation, bankruptcy, or legal financial obligations.
Explore the concept of the ratchet effect, where an economic variable, such as prices or wages, undergoes an irreversible change. Understand how temporary pressures can have lasting impacts on the economy and contribute to inflation.
A rate is a quantity or amount measured with respect to another quantity or amount. Often used to denote interest rates, exchange rates, or other financial metrics, it serves as a basis for determining charges or payments.
The rate base is the value established for a utility by a regulatory body on which a regulated company is allowed to earn a particular rate of return.
A rate cap refers to a predetermined limit placed on the increases and decreases in the interest rate for an adjustable-rate mortgage (ARM), providing a level of protection to the borrower against significant rate changes.
A rate card is a document used in advertising to give the advertising cost per advertising unit. The rate card includes space, time, mechanical requirement data, and other pertinent information.
The rate of inflation measures the percentage change in the price level of goods and services over a period, indicating how much prices have increased or decreased, reflecting the economy's health.
The rate of interest represents the cost of borrowing money expressed as a percentage of the principal amount. It is a fundamental concept in both personal and corporate finance, impacting loans, savings, investment decisions and the overall economy.
An annual measure for evaluating the efficiency of an investment, typically represented as a percentage of the original investment value.
Rate of Return on Equity (ROE) measures the profitability of an investment, focusing on net income generated by shareholders' equity. It provides insights into how efficiently a company uses its equity base to generate profits.
Rate of return pricing involves setting prices for a range of products so that they achieve a predetermined rate of return or return on capital employed (ROCE). This pricing strategy aligns pricing decisions with the financial objectives of earning a specific return, ensuring that the company meets its profitability targets.
The rate of turnover, also known as the turnover ratio, depicts how frequently some part of the assets of an organization is turned over (i.e., replaced by others of the same class) within a specified period, typically a year.
A basis used in absorption costing for absorbing manufacturing overhead into the cost units produced. It is essential for allocating overhead costs accurately in a manufacturing environment.
Rate per machine hour is a basis used in absorption costing for absorbing manufacturing overhead into cost units produced, providing insights into the operational efficiency and cost management within a manufacturing setup.
A basis used in absorption costing for absorbing manufacturing overhead into the cost units produced.
Rate setting refers to the establishment of utility rates by public service utility commissions to ensure fair pricing for consumers and sufficient revenue for the utility companies.
A rated policy is an insurance policy where the applicant is charged a higher-than-standard premium due to unique factors such as health impairments, hazardous occupations, or risky hobbies.
Ratification refers to the official approval or confirmation by a person or entity of a previous contract or act, which would not be legally binding without such approval. It often occurs in situations where the initial agreement was not properly authorized or where further consent is essential for the agreement's enforceability.
The process of systematically assigning ranks or evaluations to goods and services based on set criteria, encompassing various domains such as credit, investment, and insurance.
A rating agency is an organization that monitors the credit backing of bond issues and other forms of public borrowings. It also provides ratings on the risks involved in holding specific stocks. Well-known rating agencies include Standard & Poor's, Moody's, and Fitch.
Ratio analysis is the use of accounting ratios to evaluate a company's operating performance and financial stability. Examples include return on capital employed and gross profit percentage for profitability assessment. Additionally, the liquid ratio examines solvency, while gearing ratios evaluate the company's financial structure.
A Ratio Covenant is a form of covenant in a loan agreement that includes conditions relating to financial ratios such as the gearing ratio and interest cover.
The highest level of measurement in which not only the differences between observations are quantifiable, but the observations can themselves be expressed as a ratio. It is the most powerful measurement scale.
Rational expectations refer to the hypothesis in economics that individuals make decisions based on their best available information, forecasting future economic variables as accurately as possible.
Rationalization refers to reorganization efforts within a firm, group, or industry aimed at increasing efficiency and profitability. Activities under rationalization may include closing redundant units, expanding others, or restructuring the product range to adapt to market demands.
A method for limiting the purchase or usage of an item when the quantity demanded exceeds the quantity available at a specific price. Common during crises, rationing ensures fair distribution of scarce resources.
Initial data a researcher has before beginning analysis, often unprocessed and unorganized, representing real-world conditions without any transformations or analytical treatments.
Acreage with no added improvements such as landscaping, drainage, streets, utilities, and structures.
Raw material refers to the primary substances used as a component in the manufacturing process of finished goods. For instance, wool serves as the raw material in the production of woolen sweaters.
Raw materials are the basic materials that are used at the very beginning of a production process, essential for manufacturing final products.
The inventory of raw materials held at a specified time, which appears on the balance sheet under the heading of current assets.
Reach refers to the total number of audience members who are exposed to a specific message at least once within a particular time frame. It is a crucial metric in advertising and marketing to understand the potential impact of a campaign.
Read-Only Memory (ROM) is a type of non-volatile memory used in computers and other electronic devices to store firmware and data that should not be modified during the regular operation of the device.
Read-Only Memory (ROM) is a type of non-volatile storage used in computers and other electronic devices. Data stored in ROM can only be read and not written during normal operation, making it crucial for storing firmware and system software that do not require modification.
Reading the tape involves monitoring changes in stock prices as displayed on the ticker tape in an attempt to gauge immediate stock market conditions of a particular stock, industry group, or the market as a whole.
Voluntary reorganization by the stockholders themselves of a corporation facing financial difficulties; the voluntary restructuring of a corporation's debt and capital structure.
A README file is a text document, often named README.TXT, that provides key information about a software application, to be read before proceeding with installation or usage.
In real estate, 'ready, willing, and able' refers to a person who is capable of an action and disposed to act, particularly in terms of buying property under the terms of a listing agreement. If a broker finds such a person, they have earned their commission because they have fulfilled the requirements of the listing.
Reaganomics is a term used to describe the conservative, free-market economic policies endorsed by President Ronald Reagan and his administration during his time in office from 1981 to 1989.
In economics and finance, 'real' is used to describe variables such as prices, wages, and interest rates that have been adjusted for inflation, providing a more accurate representation of purchasing power and economic value over time.
Real accounts refer to ledger accounts used to record property, plant, equipment, and other assets, distinguishing them from nominal accounts which track revenues and expenses.
Real earnings refer to wages, salaries, and other forms of income adjusted for inflation, providing an accurate measure of changes in purchasing power over time.
In the USA, immovable property, especially land and buildings.
In the USA, immovable property, especially land and buildings.
A real estate agent is a licensed professional who represents buyers and sellers in real estate transactions.
A Real Estate Broker arranges the purchase or sale of property for a buyer or seller in return for a commission. Brokers must be licensed by the state, and salespeople, who are also licensed, work under brokers.
Real estate closing, also known as settlement or completion, is the process where the ownership of property is transferred from the seller to the buyer. It involves the finalization of all contracts and financial arrangements, the signing of relevant documents, and the transfer of funds.
A Real Estate Commission is a state agency responsible for enforcing real estate license laws, regulating the activities of real estate professionals to ensure compliance with the legal standards and protection of consumer interests.
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.
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.
A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-producing real estate.
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.
