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September 08th 2010.

Financial Glossary

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R  ( 31 DEFINITIONS )

Racketeering acts
Racketeering acts are acts of engagement in illegal activities such as fraud in the sales of securities, mail fraud, or wire fraud.    top

Random sample
A random sample is a set of sampling units chosen so that each population item has an equal likelihood of being selected in a sample.    top

Random walk
A random walk is a time-series analysis of a sequence that fluctuates randomly over time.    top

Ratio
A ratio is one number divided by another as a measure of relative proportionality.    top

Rational
Rational means that people rank their preferences in a logically consistent manner.    top

Rational expectations
Rational expectations state that the market does not systematically misinterpret the valuation implications of a supply of information, but rather puts a valuation on securities that is on average correct or unbiased.    top

Raw materials inventory
Raw materials inventory refers to goods on hand for direct use in manufacturing or further processing of goods for sale.   top

Real accounts
Real accounts, also known as permanent accounts, are general ledger accounts that are not closed to retained earnings at the end of an accounting period. They are balance sheet accounts.   top

Real assets
Real assets are real estate property, land and buildings.   top

Realizable value
The realizable value is the expected proceeds from converting assets into cash.    top

Realization
Realization is the process of converting an asset, liability, or commitment into a cash flow.   top

Realized revenue
Realized revenue is revenue for which cash has been received.    top

Rearrangements
Rearrangements are the costs of reinstallation, rerouting, or rearranging factory machinery to increase efficiency.   top

Reasonable assurance
Reasonable assurance is the concept that recognizes that the cost of any entity's internal control structure should not exceed the benefits that are expected to be derived.   top

Recapture
Recapture of CCA occurs when the UCC balance of a particular pool of assets is negative even if there are assets still remaining in the pool. This negative balance is recapture and is fully taxable as business or property income.   top

Receipts
Receipts are cash inflows.    top

Receivables
Receivables are monetary accounts that will be paid to the corporation in the future. They may be accounts, notes, interest, taxes, etc.    top

Receiving report
A receiving report is a form used within the business to notify the appropriate persons that ordered goods were received and to describe the quantities and condition of the goods.   top

Reciprocal allocation approach to allocating service department costs
The reciprocal allocation approach to allocating service department costs is a method that gives full recognition to interdepartmental services. This method uses simultaneous allocations of each department involved.   top

Reciprocal services
Reciprocal services are services provided between service departments.   top

Reciprocal transfer
A reciprocal transfer is a transfer, or transaction, in which the firm both transfers and receives resources. For example, the sale of goods for cash would be a reciprocal transfer.   top

Recourse (factoring of accounts receivable)
Recourse in factoring of accounts receivable occurs when the risk of non-payment on factored accounts receivable remains with the vendor. If the finance company cannot collect the full amount of the factored receivables, the vendor company must make good on the deficiency. As the risk of default and ultimate liability remains with the vendor company, the receivables and the liability typically remains on its balance sheet.   top

Recurring operating contingent loss exposure
Recurring operating contingent loss exposure is a risk that normally exists in the undertaking of the business' operations that merits no special reporting treatment. This is because the loss exposure is part of the normal risks of being in that specific business.   top

Redeemable securities
Redeemable securities are securities in which the condition of the security issue allows the company to repurchase its securities for a specified price at a period in time prior to maturity.   top

Redemption value
The redemption value is the amount that must be paid to call and retire a preferred share.   top

Referral fees
Referral fees are fees a CPA receives for recommending another CPA's services, and fees a CPA pays to obtain a client. Such fees may or may not be based on a percentage of the amount of any transaction.   top

Refunding (of a bond)
Refunding of a bond is the replacement of one bond issue with another bond issue. It may be used to extinguish debt covenants or allow refinancing at a lower market rate, etc.   top

Registered pension plan (RPP)
A registered pension plan (RPP) is a pension plan legally registered with the provincial pension commissioner and must comply with provincial pension legislation. A plan must be registered in order for pension contributions to be tax deductible.   top

Registered retirement savings plan (RRSP)
A registered retirement savings plan (RRSP) is one of three tax-assisted retirement savings plans that allow an individual to accumulate amounts on a tax-deferred basis in order to build a retirement fund. An RRSP is a formal arrangement between a contributor and a plan issuer/trustee, such as a bank, trust company, brokerage house, insurance company, or credit union whereby individuals who have eligible earned income may contribute to RRSPs for their own benefit or for their spouse's benefit. An RRSP must be registered with CCRA in order for contributions to be eligible deductions.    top

Registrar
A registrar is a fiduciary who keeps the shareholder list and from time to time determines the shareholders eligible to receive dividends (shareholders on record on a dividend record date) and those entitled to vote at the annual meeting.   top

Regression line
A regression line is a line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a + bX, represents the average variable cost per unit of activity. The point where the line intersects the cost axis, denoted by the letter a in the above equation, represents the average total fixed costs. Y is the total costs and X is the volume.    top