What Is Revaluation Reserve? Revaluation reserve is an accounting term used when a company creates a line item on its balance sheet for the purpose of maintaining a reserve account tied to certain assets. This line item can be used when a revaluation assessment finds that the carrying value of the asset has changed. Revaluation
What Is Revdex? Revdex, a colloquial moniker that is a contraction of “25 revenue bond index”, approximates the yield that an investor will receive if they buy revenue bonds maturing in 30 years. Key Takeaways Revdex, a colloquial moniker that is a contraction of “25 revenue bond index”, approximates the yield that an investor will
What is Revealed Preference? Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and the item’s price are held constant, is the best indicator of their preferences. Key Takeaways Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that
What Is Revenue? Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement. Key Takeaways Revenue
What Is Revenue-Based Financing? Revenue-based financing, also known as royalty-based financing, is a method of raising capital for a business from investors who receive a percentage of the enterprise’s ongoing gross revenues in exchange for the money they invested. In a revenue-based financing investment, investors receive a regular share of the businesses income until a
What Is Restructuring? Restructuring is an action taken by a company to significantly modify the financial and operational aspects of the company, usually when the business is facing financial pressures. Restructuring is a type of corporate action taken that involves significantly modifying the debt, operations, or structure of a company as a way of limiting
What Is a Retail Lender? A retail lender is a lender who lends money to individuals or retail customers. Banks, credit unions, savings and loan institutions, and mortgage bankers are popular examples of retail lenders. Other retail lenders may include third-party lenders partnering with retail businesses to offer credit to customers. Key Takeaways Retail lenders
What Is a Retail Industry ETF? A retail industry ETF is an exchange-traded fund (ETF) that invests its capital solely in the stocks of companies that sell retail merchandise to consumers. Investors that are seeking exposure to the retail sector would purchase shares of a retail industry ETF hoping for appreciation in their investment. Key
What Is the Retail Inventory Method? The retail inventory method is an accounting method used to estimate the value of a store’s merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise. Along with sales and inventory for a period
What Is a Retail Investor? A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities or funds that contain a basket of securities such as mutual funds and exchange traded funds (ETFs). Retail investors execute their trades through traditional or online brokerage firms or other types of
