UAE Accounting & Tax Glossary

Pro Rata

Pro rata is a Latin term that means "in proportion."

Qualified Small Business Stock (QSBS)

Qualified small business stock (QSBS) refers to stock in a qualified small business that is held by the original purchaser for more than five years.

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's liquidity and ability to meet its short-term financial obligations.

Ramp Time

Ramp time is the amount of time it takes for a system or process to reach its full operating capacity.

Reconciliation

The process of confirming that two sets of financial records agree — for example, your books versus your bank statement.

Repeat Customer Rate

The repeat customer rate is the percentage of customers who make repeat purchases from a business.

Retention

Retention refers to the ability of a company to keep its employees, customers, or other stakeholders over time.

Revenue Recognition

The accounting principle governing when income is recorded. Under IFRS 15 (adopted in the UAE), revenue is recognised when performance obligations to a customer are satisfied — not simply when cash is received.

Right of First Refusal (ROFR)

A right of first refusal (ROFR) is a legal term that refers to the right of a person or entity to have the first opportunity to purchase or acquire something before it is offered to others.

Roll-Up Vehicle (RUV)

A roll-up vehicle, also known as a RUV, is a company that is created specifically for the purpose of acquiring and consolidating smaller companies in a particular industry or market.

Runway

In the context of a business or startup, runway refers to the amount of time that a company has before it runs out of cash or other resources and is unable to continue operating.

Sales and Marketing Efficiency

Sales and marketing efficiency is a measure of the effectiveness of a company's sales and marketing efforts in generating revenue.

Finances Glossary

Glossary