-
REVALUATION RESERVE
see ASSET REVALUATION
RESERVE.
-
REVALUATION SURPLUS
, under the revaluation
model, increases in carrying amount above a cost-based measure are recognized
as revaluation surplus.
-
REVENUE
is the inflows of assets from
selling goods and providing services to customers; including the reduction
of liabilities from selling goods and providing services to customers.
-
REVENUE ADJUSTMENT
is a journal entry
to either increase or decrease revenue based upon new data; thereby either
increasing or decreasing cash.
-
REVENUE BONDS
are a type of municipal
bond where principal and interest are secured by revenues such as charges
or rents paid by users of the facility built with the proceeds of the
bond issue. Projects financed by revenue bonds include highways, airports,
and not-for-profit health care and other facilities.
-
REVENUE CONTRACT
is a binding agreement
between a governmental body and another party that defines the terms under
which revenue will be received. A contract can be distinguished from a
customer purchase order by the fact that a contract will contain the signatures
of both parties, while a purchase order will contain only the signature
of the customer.
-
REVENUE EXPENDITURE
is the cost of
resources consumed or used up in the process of generating revenue, generally
referred to as expenses.
-
REVENUE JUSTIFIED
is where the revenue
realized from a product or service will pay for the cost and expenses
of that product or service, i.e. the product or service will pay for
itself.
-
REVENUE PRINCIPLE
is where revenues
are recorded when they are earned regardless of timing of cash receipts.
-
REVENUE RECOGNITION
is the process
of recording revenue, under one of the various acceptable methods, in
the accounting period. In each period of revenue recognition, all related
expenses should be matched to revenue. The most common method of recognizing
revenue is at the time of sale or provisioning of service.
-
REVENUE RESERVE
is a fund that is not
a CAPITAL RESERVE, i.e. the funds are distributable.
-
REVERSE COST-BENEFIT METHOD
is based
on the short-cut rate of return formula and amounts to asking the question:
given the cost of the investment, what level of annual benefits would
produce a given rate of return (8 percent, for instance) on the investment?
-
REVERSE REPO
see REVERSE REPURCHASE
AGREEMENT.
-
REVERSE REPURCHASE AGREEMENT
(reverse
repo) is the opposite of a repo in that it is the purchase of securities
(usually government debt) tied to an agreement to sell the security back
at a later date at a higher price. Reverse repo's are normally short
term agreements; primarily on an overnight basis.
-
REVERSE TAKEOVER
can occur in different
forms: 1. a smaller corporate entity takes over a larger one.; 2. a private
company purchases a public one; or, 3. a method of listing a private company
while bypassing most securities regulations, whereby which a shell public
company buys out a functioning private company whose management then controls
the public company.
-
REVERSING ENTRY
is a very
special type of adjusting entry. Generally, it is a debit or credit bookkeeping
entry made to reverse a prior bookkeeping entry. They can be extremely
useful and should be used where necessary. A reversing entry comes in
two parts: the original adjusting entry, and the reverse, or opposite
entry. The second entry is written by simply reversing the position of
all debits and credits. Ultimately, the end result on the books is zero,
but the adjusting entry serves to correctly allocate an expense, so the
financial statements are correct.
-
REVERSION ASSET
see ASSET REVERSION.
-
REVIEW
is an accounting service providing some
assurance to the Board of Directors and interested parties as to the reliability
of financial data without the CPA conducting an examination in accordance
with generally accepted accounting standards. The AICPA auditing standards
board formulates review standards for public companies while the AICPA
Accounting and Review Services Committee provides review standards for
non-public businesses.
-
REVOCABLE LETTER OF CREDIT
-
REVOLVING COLLATERAL
are accounts receivable
or inventory which change from day to day.
-
REVOLVING CREDIT
is a line of credit
extended to customers who may use it as often as desired up to a certain
dollar limit. Items purchased using this line of credit may be paid in
full upon receipt of a monthly statement, or they may be paid for in
several installments, for which an interest charge is added. Also known
as REVOLVING
LINE OF CREDIT.
-
REVOLVING FINANCING
is financing secured by collateral.
-
REVOLVING FUND
is money that is renewed as it
is used.
-
REVOLVING LOAN
is a loan that is automatically
renewed upon maturity.
-
REWORK
is to change an item in order
to improve it or make it more suitable for a particular purpose, e.g.
to rework a defective product into one that exhibits the quality required
for acceptance.
-
RFP
is Request for Proposal.
-
RFSB
is Rehabilitation Fund for Small
Businesses.
-
RISK ADJUSTED RETURN
is when we subtract from
the rate of return on an asset a rate of return from another asset that
has similar risk. This gives an abnormal rate of return that shows how
the asset performed over and above a benchmark asset with the same risk.
We can also use the beta against the benchmark to calculate an alpha which
is also risk adjusted performance.
-
RISK MANAGEMENT
is the process of defining and analyzing risks, and then deciding on the appropriate course of action in order to minimize these risks, while still achieving business or investment goals.
-
RISK-BASED CAPITAL
is one of three capital standards adopted for savings institutions in 1989. The standard is designed to require savings institutions to hold more capital for higher-risk assets. The value of each asset is weighted according to its risk and then capital is calculated at a fixed percent of each risk-weighted asset. The standard adopted in 1989 was 8 percent of risk-weighted assets. See TANGIBLE CAPITAL and CORE CAPITAL.
|
Homepage 
Financial Dictionary
R
