Return of Capital
is the distribution of cash that resulted from tax savings on depreciation, sale of a capital asset or securities, or any other sources unrelated to retained earnings.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Return on assets (ROA)
shows the after tax earnings of assets. Return on assets is an indicator of how profitable a company is. Use this ratio annually to compare a business' performance to the industry norms: The higher th...
Openreturn on assets ratio
A ratio comparing net income to the average total assets it's same Return On Assets
OpenReturn On Capital Employed - ROCE
is a measure of how effectively the company is using its capital. The formula to measures the return on all the assets the company is using: Profit before interest and tax (PBIT) / (total assets - cur...
OpenReturn On Equity (ROE)
measures the overall efficiency of the firm in managing its total investments in assets and in generating a return to stockholders. It is the primary measure of how well management is running the comp...
Openreturn on equity ratio
A ratio comparing income (net income minus preferred dividends) to the average total equity
OpenRETURN ON INVESTED CAPITAL (ROIC)
is a measure of how effectively a company uses the money (owned or borrowed) invested in its company operations. It is calculated by: net income after taxes / (total assets less excess cash minus non-...
OpenReturn on Investment (ROI)
ROI measures the return generated from an investment relative to its cost.
OpenReturn on Sales
is a measure of a company's profitability, equal to a fiscal year's pre-tax income divided by total sales.
OpenRevaluation Surplus
The revaluation surplus shows increases in the fair value over the historical cost. For information, in the event of a revaluation of assets, the surplus is classified as an equity item, or as goodwil...
Openrevenue
revenue Inflows and other benefits received in exchange for the providing of goods and services and also is the inflows of assets from selling goods and providing services to customers; including the ...
OpenRevenue
Revenue is income arising from ordinary activities such as sales of goods or services.
OpenRevenue
Revenue is the income generated from a company’s main activities such as selling goods or providing services. It represents the value delivered to customers and is recognized when earned, regardless o...
OpenRevenue recognition
Recording revenue when or as performance obligations are satisfied.
OpenRight-of-use asset
An asset representing the lessee’s right to use an underlying asset.
OpenRisk Management
Process of identifying and monitoring business risks in a manner that offers a risk/return relationship that is acceptable to an entity's operating philosophy.
OpenRisk of material misstatement
The combined inherent and control risks relating to financial statements.
OpenROA
see RETURN ON ASSETS.
OpenROCC
is an acronym for Return On Committed Capital.
OpenROE
see RETURN ON EQUITY.
OpenROG
in business, is an acronym meaning Receipt Of Goods.
OpenROI
return on investment
OpenROI (Return on Investment)
Return on Investment can be calculated in various ways. The most common method is Net Income as a percentage of Net Book Value (total assets minus intangible assets and liabilities).
OpenROIC
it's mean Return on Invested Capital.
OpenRPA in Accounting
Robotic Process Automation applied to accounting tasks such as data entry, reconciliation, and reporting.
OpenSaaS Metrics
Key performance indicators specific to Software-as-a-Service businesses, such as MRR, ARR, and churn rate.
OpenSales
A revenue account and a sales account contains sales that report sales of goods or services. Sales are recorded in the accounting period in which the ownership of the goods was transferred from the se...
OpenSampling
Audit sampling is applying audit procedures to less than 100% of items to draw conclusions about the population.
OpenSampling risk
The risk that the auditor’s conclusion based on a sample differs from the conclusion if the entire population were tested.
Openserial bond
Sequential bonds are the process of issuing bonds with multiple payment dates rather than full maturity by a certain date
OpenShare capital
The capital is the company's issued shares and a cash or other cash-denominated consideration has been placed.
Openshareholder
is an individual or company, (including corporations) that legally owns one or more shares of a company.
OpenShort-term lease
A lease with a term of 12 months or less.
OpenSignificant risks
Risks that require special audit consideration due to their nature or likelihood.
Opensimple interest
SIMPLE INTEREST is interest computed on principal alone, as opposed to compound interest which includes accrued interest in the calculation.
Opensingle-step income statement
A simple income statement with a section for all revenues and another for all expenses; there is no direct association between specific revenue and expense components
OpenSmart Contracts
Self-executing contracts with the terms of the agreement directly written into code on a blockchain.
OpenSolvency
Solvency is the ability to meet long-term obligations and remain financially stable.
Openspecific identification method
The specific identification method is a method of determining inventory cost under which the actual cost of a particular item is assigned to that item; Used to determine cost of goods sold.
Opensplit-off point
A split point is the stage in the production process at which joint products are identified as distinct products that can be sold or processed further; In which several products emerge from a common p...
OpenSPOILAGE
Spoilage, scrap, evaporation, etc. in the manufacture of products. Natural corruption is inevitable and is part of the cost of producing high-quality output. Abnormal damage is avoidable and is not pa...
OpenStandard Cost
Standard cost is a production or operating cost that is carefully determined in advance. Standard cost is the target cost that should be achieved. Standard cost is compared to actual cost in order to ...
OpenStatement of Cash Flows
The statement of cash flows is one of the main financial statements in the financial report. It explains the cash flows with the sources and uses of cash according to operational activities, investmen...
OpenStatement of Changes in Owner's Equity
It is a statement of financial statements and it shows the extent of change in the elements of equity during the financial period.
Openstatement of stockholders' equity
Statement of Shareholders' Equity A financial statement that shows all changes in the various shareholders' equity accounts during the same period(s) as the income statement and statement of cash flow...
Openstatic budget
A fixed budget is a fixed budget that does not expect alternative results. Estimated sales and expenses are fixed and the fixed budget does not change with changes in volume or activity.
Openstock dividend
stock dividend A dividend in the form of more shares of stock. A 5% stock dividend means that a stockholder holding 100 shares would receive 5 additional shares of stock. Since all shareholders receiv...
OpenStranded Plant
is a cost that has been incurred, but can not be reversed. Usually referred to as a sunk cost.
OpenStrategic Asset
in relation to the assets held by a legal economic entity, means an asset or group of assets that the economic entity needs to retain if the entity is to maintain the entity's capacity to achieve or p...
OpenStrategic Goal
It is the goal that the organization aims to achieve that develops from strategic issues. They transform strategic issues into specific performance objectives that impact the entire organization. It c...
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