Ratio Verum

Latin phrase

Pronunciation: /ˈra.ti.o ˈweː.rum/ (RAH-tee-oh VEH-room)

Definition:

1. ratio verum — “the reason of the truth” or “the rationale of truth.”
   Refers to the reasoning or logical foundation that supports or explains a particular truth. Often used in philosophical contexts to describe the logical or rational explanation that justifies or reveals what is considered true.

Context:

Used in the context of financial transparency and integrity, ratio verum emphasizes the importance of truthfulness and accuracy in financial reports and bookkeeping practices. It highlights that the methods and reasoning behind financial decisions should align with the actual financial situation.