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real accounts: Accounts that are not closed to a zero balance at the end of each accounting period; permanent accounts appearing on the balance sheet.

realized gains and losses: Gains and losses resulting from the sale of securities in an arm's length transaction.

receivables: Claims for money, goods, or services.

recourse: The right to seek payment on a discounted note from the payee if the maker defaults.

recovery period: The time period designated by Congress for depreciating business assets.

redemption value: The price, stated in the contract, to be paid by a company to repurchase preferred stock.

registered bonds: Bonds for which the names and addresses of the bondholders are kept on file by the issuing company.

relative fair market value method: A way of allocating a lump-sum or "basket" purchase price to the individual assets acquired based on their respective market values.

residual income: The amount of net income an investment center is able to earn above a specified minimum rate of return on assets.

retail inventory method: A procedure for estimating the dollar amount of ending inventory; the ending inventory at retail prices is converted to a cost basis by using a ratio of the cost and the retail prices of goods available for sale.

retained earnings: The portion of a corporation's owners' equity that has been earned from profitable operations and not distributed to stockholders.

return on investment (ROI): A measure of operating performance and efficiency in utilizing assets computed in its simplest form by dividing net income by average total assets.

return on sales revenue: A measure of operating performance; computed by dividing net income by total sales revenue.

return on stockholders' equity: A measure of overall performance from a stockholder's viewpoint; includes management of operations, uses of assets, and management of debt and equity, and is computed by dividing net income by average stockholder's equity.

return on total assets: An overall measure of the return to both stockholders and creditors; includes operating performance and asset turnover.

revenue recognition principle: The idea that revenues should be recorded when (1) the earnings process has been substantially completed and (2) an exchange has taken place.

revenues: Increases in a company's resources from the sale of goods or services.

ROI (return on investment): A measure of operating performance and efficiency in utilizing assets computed in its simplest form by dividing net income by average total assets.  

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