Bellevue & Seattle, WA Tax, Accounting, QuickBooks, Business Consulting: Stephen L. Nelson, CPA

Accounting Terms-R

rate of return
Money made on invested capital.

real-estate investment trust (REIT)
A trust that owns real estate and sells shares from the profits of that ownership to investors.

real property
Land and buildings on the land, as opposed to personal property, which comprises movable items such as jewelry and equipment.

real rate of return
The rate of return on an investment that takes into account how rates are affected by inflation. The real rate of return is the rate of return less the rate of inflation over the length of the investment.

recourse
Being able to compel a debtor to cover debts.

reorganization
After a business has declared bankruptcy, the restructuring of its assets in order to make it profitable again.

residual value
The value an asset has when the asset’s user or owner is finished using it.

restrictive covenant
A clause in an agreement or contract prohibiting a party or parties from taking certain actions. The most common restrictive covenant in business is one that prohibits a seller of a business from engaging in the same business for a certain number of years.

retained earnings
Business profits that are retained for expansion rather than paid in dividends to stockholders.

revenue
The total income from a given endeavor. Also gross income from an investment.

revocable trust
A trust giving property to heirs that can be changed or revoked at any time by the person who originates the trust. Under this arrangement, the property is transferred to the heirs on the death of the trust originator, and the estate does not need to go through probate.

right of survivorship
The right of surviving spouses to inherit the property of deceased spouses.

risk
In financial terms, the possibility that an investment will not be repaid and that the method of investment will be rendered unprofitable by market conditions.

rollover
The automatic renewal of a certificate of deposit (CD) at present rates of interest. Also, the automatic reinvestment of money market funds.

Rule of 72
A way of determining how long it will take for a sum of money to double at a specific interest rate, by dividing 72 by the interest rate. For example, a savings account earning 6 percent interest will double in 12 years, since 72 divided by 6 equals 12.

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