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GLOSSARY OF BUSINESS AND FINANCIAL TERMS

R

 
RATIO - The relationship of one thing to another. A ratio is a shortcut way of comparing
things that can be expressed as numbers or degrees.

RECEIVABLE - Ready for payment. In accounting, a receivable is an asset - it represents money that is owed to you.

RECONCILIATION (of cheques) - The process of verifying a business's own record of cheques written against the bank statement.

REMITTANCE SLIP - A source document for every cheque received from a customer.

RESERVE - That which is held back or stored for future use or in case of emergency.

RETAIL - Selling directly to the customer.

REVENUE - A flow of cash and accounts receivable into the business resulting from the sale of services and goods to customers.

REVENUE AND EXPENSE TRANSACTIONS - Financial events determining the profit or loss of a business.
 

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