Racketeer Influenced and Corrupt Organizations (RICO) Act The statute outlaws the investment of ill-gotten gains in another business, the acquisition of an interest in a business through certain illegal acts, and the conduct of the affairs of a business through such acts.
Random Sample One in which every member of the universe has an equal chance of being chosen.
Random Access Memory (RAM) The semiconductor component of computers that store instructions and data currently being used.
Range of Variation The acceptable parameters of variance between actual performance and the standard.
Rate of Return On Investment (ROI) A measure of managerial efficiency in the use of investments in assets, computed as controllable operating income divided by invested assets.
Rate of Return on Stockholders’ Equity The percentage return that a company earned on the owners’ investment during the previous accounting period found by dividing net income by stockholders’ equity.
Ratification 1. The confirmation of one’s own previous act or act of another. A principal may ratify the previous unauthorized act of his agent. E.g., Mister X’s agent, without authority buys goods. Mister X, by keeping the goods and receiving the benefits of his agent’s act, ratifies the agency;

2. Occurs when union members vote to accept the terms of a negotiated labor agreement.

Rating System A system used by credit reporting agencies to indicate a customer’s financial strength and method of payment. Rating systems use a combination of numbers, letters, or symbols.
Ratio A mathematical statement of the relationship or proportion between two elements, derived by dividing one into the other.
Ratio Analysis Utilizes the data from all four financial statements and provides a broader perspective of the firm’s financial condition. Can ascertain the profitability of a firm, its ability to meet short-term obligations, the extent to which the company is financed by debt, and whether the management is utilizing its assets effectively.
Ratio Decidendi Logical basis of judicial decision.
Rational Expectations A school of thought that claims people form expectations based on all available information, including the probable future actions of government policy makers.
Rational Motives Buying reasons that arrive from capital planning and analysis of information.
Raw Materials Industrial products that are composed of farm and natural products.
Reactor A business-level strategy that characterizes inconsistent and unstable decision patterns.
Read Only Memory (ROM) The semiconductor component of computers that cannot be changed by the user’s programs because it stores programs controlling the operations of the computer.
Real Accounts Balance sheet accounts.
Real Gross Domestic Product (GDP) The value of GDP measured in terms of dollars of fixed purchasing power.
Real Income Income measured in terms of the goods and services it can buy.
Real Property Land with all its buildings, appurtenances, equitable and legal interests therein. In contradiction to personal property, which refers to movables or chattels.
Real Rate of Interest The nominal rate of interest minus the inflation rate.
Real Time Processing A form of transaction processing in which each transaction is executed as soon as complete data becomes available for the transaction.
Realization The sale of assets when an entity is being liquidated.
Reasonable Care The care that prudent persons would exercise under the same circumstances.
Rebate A sum of money returned to a customer following payment for goods or services. A reduction from the original sales price.
Receipt A written acknowledgment of receiving money or something of value.
Receipt of Goods (ROG) Terms that permit the buyer to compute the cash discount period from the date on which the merchandise is received. The net credit period, however, is always calculated from the invoice date and not from the date of arrival.
Receivables Any money owed to the corporation, whether or not they are currently due. Long-term receivables appear as a long-term asset.
Receiver An officer of the court appointed on behalf of all parties to the litigation to take possession of, hold, and control the property involved in the suit, for the benefit of the party who will be determined to be entitled thereto.
Receivership Is a means of handling the estate of a distressed debtor. Its purpose is to rehabilitate, but if this cannot be accomplished, receivership proceedings will result in liquidation.
Receiving Report The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected.
Recession A decline in an economy’s total production lasting six months or longer.
Reciprocal Buying A practice wherein two or more companies become mutual customers, buying each other’s goods and services.
Reclamation A term used in bankruptcy to denote a right or proceeding on the part of the person having title to property to recover the same when it is in possession of the bankrupt, debtor, receiver or trustee. Refer to Section 2-702 of the UCC and Section 546 (c) of the Bankruptcy Code.
Record A set of fields treated as a unit because each is related to the same thing, person, or event.
Record Locking An indication that a database record temporarily cannot be accessed by any other process until it is unlocked.
Recoupment A right to deduct from the plaintiff’s claim any payment or loss that the defendant has suffered by reason of the plaintiff’s wrongful act.
Recourse The right of a person or holder in due course to demand payment from anyone who endorsed an instrument if the original signer fails to pay.
Recovery Reclaiming something of value. Money collected by a creditor before or after obtaining a judgment in court.
Recruitment An activity in which the organization attempts to identify and attract candidates to meet the requirements of anticipated or actual job openings.
Recycling The practice of reclaiming or producing materials from previously manufactured products and using them to make other items.
Red-Circled or
An incumbent paid above the range set for a job.
Redemption To buy back. A debtor buys back or redeems his pledged property when he pays the debt.
Reduction of Uncertainty The attainment of greater certainty about what to do based on information relevant to a decision.
Reengineering The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
Referee A person to whom a cause pending in a court is referred by the court, to take testimony, hear the parties, and report thereon to the court.
Registered Bond A bond where owner’s name is on record with the company and appears on the bond itself.
Registered Form A security is in registered form when it specifies a person entitled to the security or to the rights it evidences and when its transfer may be registered upon books maintained for the purpose by, or on behalf of, an issuer as security states.
Registrar A commercial bank that monitors the number of shares of stock a corporation sells to insure that it does not sell more than its charter has authorized.
Reinforcement Theory Behavior is a function of its consequences.
Reinsurance In a contract of reinsurance, one insurance company agrees to indemnify another insurance company in whole or in part against risks that the first company has assumed. The original contract of insurance and the reinsurance contract are distinct contracts.
Relational Data Model The technique for combining and manipulating data in multiple files to produce a file that answers a question.
Relative Pricing A decision to set prices above competition, below competition, or to meet competition.
Release 1. The voluntary relinquishing of a right, lien, or any other obligation. A release need not be under seal, nor does it necessarily require consideration. The words release, remiss, and discharge are often used together to mean the same thing;

2. An upgraded version of software that replaces a previous version.

Relevant Range The range of activity over which changes in cost are of interest to management.
Remand To send back a case from the appellate court to the lower court, in order that the lower court may comply with the instructions of the appellate court.
Remedy The word is used to signify the judicial means or court procedures by which legal and equitable rights are enforced.
Remittance Funds sent from one to another usually in payment for items purchased, services rendered, or value received.
Remitting Bank Under Article 4 Bank Deposits and Collections, any payor or intermediary bank remitting for an item.
Remote Work Work done somewhere other than the organization’s office or work space.
Reorganization A voluntary or court ordered change in the capital structure of a corporation where all the assets of the old corporation are transferred to a newly formed corporation. The objective being to make a fair settlement with its creditors and permit the corporation to continue its business operation.
Replacement Decisions A class of capital budgeting decisions involving replacement of equipment.
Replevin A remedy given by statute for the recovery of the possession of a chattel taken or withheld from the owner unlawfully. Only the right to possession can be tried in such action.
Report Form of Balance Sheet A form of balance sheet with the liabilities and owner’s equity sections below the assets section.
Report Generator A program that makes it comparatively easy for users or programmers to generate reports by describing specific report components and features.
Request For Proposal (RFP) A document sent to application vendors asking for their responses to checklists of required capabilities and features.
Required Reserve Ratio The proportion of deposits a depository institution is legally required to hold in the form of reserves.
Required Reserves The dollar amount of reserves a depository institution is legally required to hold.
Requirements An unlimited credit line; any order that the customer places is approved. Only very substantial and financially sound customers can be sold on a requirements basis.
Res Adjudicata A controversy once having been decided or adjudged upon its merits is forever settled so far as the particular parties involved are concerned.
Rescind To cancel or annul a contract and return the parties to their original position.
Rescission An apparently valid act may conceal a defect that will make it null and void if any of the parties demand that it be rescinded.
Research and Development Research is an activity aimed at discovering new knowledge in hopes that such activity will be useful in creating a new product, process, or service, or improving a present product, process, or service. Development is the translation of research findings or other knowledge into a new or improved product, process, or service.
Reserve Requirement A percentage of deposits that member banks must retain on deposit within their own walls or at the Federal Reserve Bank in their district.
Reserve An amount of money set aside for accounting purposes to protect any depreciation or losses in asset values for a specific purpose.
Reserves Funds that banks use to satisfy the cash demands of their customers; reserves consist of deposits, the Federal Reserve, plus currency that is physically held by banks.
Residual Income The excess of controllable operating income over a “minimum” amount of desired controllable operating income.
Residual Value The estimated recoverable cost of a depreciable asset as of the time of its removal from service.
Resource Allocation The process and decision of allocating money to a specific project or business unit.
Respondeat Superior “The master is liable for the acts of his agent.”
Respondent One who answers another’s bill or pleading, particularly in an equity case. Quite similar in many instances, to a defendant in a law case.
Response Time Uncontrollable time spent responding to requests, demands, and problems initiated by others.
Responsible Bidder In the phrase “lowest responsible bidder,” responsible, as used by most statutes concerning public works, means that such bidder has the requisite skill, judgment, and integrity necessary to perform the contract involved and has the financial resources and ability to carry the task to completion.
Responsibility An obligation to perform assigned activities.
Responsibility Accounting The process of measuring and reporting operating data by areas of responsibility.
Responsibility Center An organizational unit for which a manager is assigned responsibility for the unit’s performance.
Restraining Order Issued by a court of equity in aid of a suit, to hold matters in abeyance until parties may be heard. A temporary injunction.
Restraint of Trade Monopolies, combinations, and contracts that impede free competition.
Restrictive Endorsement If the endorsement says “pay B only” or “for deposit only,” these are illustrations of restrictive endorsements.
Retail Inventory Method A means of estimating inventory based on the relationship of the cost and the retail price of merchandise.
Retailer A business which sells goods directly to the consumer (public).
Retained Earnings Profits reinvested in a company for improvements and expansion.
Retrenchment Strategy A corporate-level strategy that seeks to reduce the size or diversity of an organization’s operations.
Return On Assets (ROA) A profitability ratio measured using 12 months net income divided by assets. This is equivalent to return on sales multiplied by turnover.
Return On Capital (ROC) A profitability ratio measured using net income divided by invested capital. This is equivalent to return on assets multiplied by the leverage ratio (assets/equity).
Return On Equity (ROE) A profitability ratio measured as 12 months net income divided by equity. This is equivalent to return on assets multiplied by leverage (the ratio of assets to equity).
Return On Sales (ROS) A profitability ratio measured by net profit relative to revenues. Also identified as profit margin.
Revaluation Decreasing the rate of exchange at which foreign currency will be traded for domestic currency.
Revenue Cash or other items received in exchange for merchandise or services.
Revenue Budget A budget that projects future sales.
Revenue Expenditures Expenditures that benefit only the current period.
Revenue Forecasting Predicting future revenues.
Revenue Journal The journal in which all sales of services on account are recorded.
Revenue Recognition Principle The principle by which revenues are recognized in the period in which they are earned.
Revenues Increases in owner’s equity as a result of providing of services or selling products to customers.
Reversed Discrimination May exist when a person is denied an opportunity because of preferences given to protected group individuals who may be less qualified.
Review (Form of Financial Statement Opinion) Limited investigations of a much narrower scope than an audit, undertaken for the purpose of providing limited assurance that the statements are issued in accordance to GAAP.
Revocable Letter of Credit A letter of credit that may be amended or canceled without giving prior notice to the beneficiary.
Revolving Credit Agreement A commercial bank’s binding promise that the money will be available if the borrowing firm requests it.
Right That which belongs to a person by law, nature, or tradition.
Right of Action Synonymous with cause of action: a right to enforce a claim in a court.
Right of Offset The right of a bank to apply funds which may be on deposit to a debt owed a bank in the event the depositor failed to make agreed payments.
Right-To-Work Laws Allow workers to obtain and keep jobs without having to join or pay money to a labor organization.
RISC (Reduced Instruction Set Computer) A method for obtaining high-speed computation by using a simple processor that operates very fast.
Risk Those conditions in which the decision maker has to estimate the likelihood of certain outcomes.
Risk Manager A person hired to identify significant pure risks that a company faces and prescribe effective techniques to deal with them.
Robinson-Patman Act Federal legislation prohibiting firms engaged in interstate commerce from charging different buyers different prices for the same goods unless there is a difference in costs or if the price does not restrict competition.
Robot Reprogrammable multifunctional manipulator that can move material, parts, or tools through variable programmed motions.
Routing Guide A guide published by retailers for manufacturers and wholesaler/distributors that establishes the trucking firms or freight consolidators that are approved by the retailer for shipping of goods to them. If this guide is not observed or challenged, the retailer will deduct a percentage of the invoice, percentage of the purchase order or a set amount from their remittance as a penalty.
Running in Parallel The simultaneous use of an old system and new system during conversion.

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