Basic Accounting Terms - R, continued
Redeem / Redemption – To restore or to buy back something usually with a condition that it will yield back an additional amount to compensate for the time that the amount was exposed to some form of risk.
Refinancing – See Debt Restructuring
Refund – Payment that is returned, usually in the form of money, due to a defect or incompleteness of the goods or services for which the money was given as payment.
Regulation – A condition or principle observed or implemented as a rule with the intention of controlling a particular action to maintain legality or uniformity.
Reimbursement – To pay back an expense that should have been incurred by another person or entity but was shouldered by another using the latter’s own money.
Remittance – Payment or sending-out of money that is expected by a person or an organization by depositing it to an authorized receiving unit.
Remuneration – Financial reward given as a form of compensation, wage, or salary.
Rent – A form of payment, usually paid periodically in exchange for the use of an establishment, equipment, or tool.
Reserve/Reserve Account – Refers to a fund that is held back or kept restricted and will be used only for the purpose for which it was set up and set aside.
Residual – The portion that remains or what is left of a whole after charges or withdrawals have been applied.
Retail – A method of selling by the smallest measurable and practicable unit at a higher price than if bought in bulk or a larger measure of quantity.
Retained Earnings – The component of a company’s stockholders’ equity account where the results of the company’s yearly operations, whether as net income or loss, are in accumulation.
Returned Check – A check issued to serve as payment but returned by the depository bank to the presenter because the balance of the account from which the funds should be drawn is insufficient or is already closed; or a technicality on the face of the check must be corrected.
Return on Investment (ROI) –A cost-to-benefit analysis, in which the amount yielded by a cash outlay will be evaluated as investment worthy by considering other purposes where the money to be used will have an equal chance of gaining fewer yields but at lesser risks.
Risk – A hazard or threat that presents future losses inherent to a property, condition, or proposition.
Rollover – A deposit or investment is re-invested, and the principal and the yield earned become the new face amount of the instrument or certificate.
Roth IRA – A retirement fund distinguished from all other forms of pension fund as it adheres to the proposal of Sen. William Roth, in which the contribution made by the employee is not taxed unless pre-withdrawn before the age of official retirement. IRA stands for Individual Retirement Fund.