Dear visitors,

Welcome to our Glossary section! We are very happy to see you here! This is the place where we will do our best to include as many terms from the accounting and financial world as possible so that we fully respond to your research and business needs.

Our team will constantly work on the content so that we make sure that you always stay satisfied with the information you obtain. We have sorted the terms alphabetically so that it is convenient for you to navigate through the section. In addition, we have integrated a special division dedicated to curious terms from the stock market. We hope you find them as much enjoyable as we do.

Sb Team wishes you a pleasant and fruitful navigation through our Glossary section!

Return on equity: Financial factor which indicates the profit which the company has realized with the capital of the shareholders. This index can be calculated with the following formula: net profit/ average own capital. It is presented in percentages.

Recovery: A phase in the economic cycle, which is characterized by a weak and relatively slow increase in the GNP after the depression.

Real exchange rate: The price of a certain currency, presented in the price of another currency, but with regard to the inflation index. When the nominal currency rate is corrected with the inflation pace, then its real value can be estimated.

Real interest rate: The nominal (market) interest rate, corrected with the inflation pace.

Reinvestment: Investing the profit of the shareholder(s), the dividends, into the business, for example buying new equipment, machinery, or technology, etc.

Restrictive fiscal policy: Increasing the income taxes and reduction of the budget costs with the purpose of reaching financial stability of the economy. Usually it applies when the economy is embraced by inflation.

Revenue: Total income before expenses.

Restructuring: Planned and controlled by the company’s management program which considerably modifies the range of the company’s scope of activity and the means by which the company’s activity is being accomplished.

Retrospective application: Application of new accounting policy regarding the operations and other events and conditions as there has been always only the new policy applicable.

Retrospective recalculation: Correction of the confirmation, evaluation and announcement of the parts of the financial statements as there has been no mistakes for past periods.

Retrospective application: Application of new accounting policy regarding the operations and other events and conditions as there has been always only the new policy applicable.

Residual value: Approximate amount which the company would currently receive by the release of a certain asset after the deduction of the approximate expenses related to the release.

Remissible loans: Loans for which the creditor has agreed not to request payment if certain conditions are met.

Related person: One person is related when:
– Directly or indirectly controls or is controlled by the company;
– Has shares in the company which gives him the opportunity to considerably influence the company;
– Exercises general control over the company;
– Is associated company;

Restructuring: A program which is planned and controlled by the management of the company and which is going to lead to considerable changes in the scope of activity of the company or the way that the activity is handled. For example, selling or terminating a part of the activities, closing the production in a country or region or redirecting of the business from one country to another; changes in the management body structure; other fundamental re-organisations which have extensive effect over the character and the focus of the company’s activity.

Return on the assets: An assessment indicator of the assets which represents a relation between the profit after taxation and all of the assets.

Return on the general capital: An indicator which assesses the capital invested by the shareholders and which is measured as a relation between the profit after taxation and the amount of the general capital.

Resident: One who resides in a particular place permanently or for an extended period and who is a treated as a local person by the tax authorities and legislation.

Risk capital: Financial long-term assets, which are being invested in companies exposed to a considerable risk, as well as invested in little new risky undertakings.

Reversal: An accounting procedure for removing encountered mistakes in the accounting recordings.

Resistance level: A price level which has been tested by the price and which cannot by passed. The resistance levels are usually met when having ascending movement – these are the levels at which a lot of sellers can appear.

Reference income: The income on which base the social securities are paid.

Risk: The possibility the return on investments to be different than the expected one. This includes a possibility for partial or full loss of the invested resources.

Risk capital: The amount which a certain investor distributes in investments in highly risky tools.

Return on investments (ROI): It represents the relation between the net profit and the investments made. It demonstrates to what extend the investments generate profit. It is calculated with the following formula: ROI = Net profit/Investments

Return on sales (ROS): It represents the relation between the operational profit and the income from sales. It indicates the operational profit which responds to one monetary unit of sales and it is calculated with the following formula: ROS = Operational profit/Income from sales.

Return on equity (ROE): Coefficient which demonstrates the relation between the net profit and the own capital. It measures the return on the capital of the shareholders. The own capital is the difference between the total value of the assets and the liabilities of the company.

Real asset: An asset which is tangible: buildings, land, machinery, equipment, materials, etc.

Regressive tax: A tax system in which the higher income is being taxed with lower tax rates.

Regulated market: The market activity is being controlled and regulated by the country through a certain institution pointed out by it.

Recession: A period of decrease in the total production. Usually this period is for more than 6 months.

Reimbursable costs: Also called Out of Pocket expenses. Cash payments that an individual or company incurs on behalf of the company, and that will be refunded sometime in the future. While some of these costs may have personally benefited the employees, companies are willing to repay employees for incurring these expenses, because they come about as a result of performing their job.