Post on 04-Jun-2018
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Finance Terminology - List of Financial Terms with examples
A
AGM- Annual General Meeting, it is the year meeting held by every registered company.
Agenda is to explain the performance during the year, presentation of annual financialstatements, voting on important financial decisions. Any shareholder can participate in AGM.
Asset turnover ratio- This ratio can be explained as Net assets / Total turnover or sales. Thisratio measures the operational efficiency of business assets. In simple terms this measures howmany time total assets turned in a year and how efficiently the assets are used in a business.
Acid test ratio- This is one of the important ratio to measure business liquidity. Businessliquidity is defined as ability of a business to pay it;s short term debts. Acid test ratio = Highlyliquid assets / current liabilities
American Depository Receipts- This is the way non-US companies raises money from USinvestors. These shares can be traded in US stock exchanges and denominated in US $.
Amortization - It is an accounting technique by which intangible assets are written off over aperiod of time. For example provision for doubtful debts or preliminary expenses are written offover a certain period of time.
Annuity- It is an investment scheme under which investor makes recurring investments andlump sum payment is made to him at the end. Common example is Recurring deposit account ata post office where people makes small monthly deposits and gets their money back at the end ofperiod. Benefit of Annuity is investor gets compound interest over a period of time.
Asset Management Company- AMC is a company that pools and invests investor money inpre-determined goals. Pool of funds is known as Mutual fund.
Audit- Financial statement and physical stock is checked annually by professional auditor (Chartered Accountant affiliated by ICAI in India )
B
Book-keeping - Recording of financial transactions in books of account.
Bear market - A market situation in which most of the investors thinks that markets will fall.
Balance of Payment - BOP is the difference between a country's exports and imports.
C
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Capital - Wealth invested by an entrepreneur on his business. Capital = Assets - Liabilities
Capital gain - Gain by selling a capital asset in which a person is not doing business. Income byselling a house by a bank employee is a capital gain whereas when a builder do the same thing itis Income from business and professional.
Current asset- An asset that can be converted into cash with 12 months. For example - debtors,stock etc.
Credit rating - A ranking applied to an individual, business or a nation based upon its credithistory and current financial position. There are various credit rating companies in India such asCrisil.
CPI- Consumer price index is measure to find price of a bundle of commodities. CPI is used tomeasure the inflation in a country.
D
Debt consolidation - Debt consolidation is a process by which various loans and converted intoa single loan to reduce interest rate and instalment value.
Depreciation - Depreciation is reduction in value of an asset due wear and tear over a period oftime. For example a company purchased a machine in 2005 and planned to charge 20%depreciation. In 2010 the machine will be written off from the books of account.
Dividend - Dividend is the amount per share paid by a company to its shareholders. Dividend
value is based upon company's profitability.
Dividend payout ratio - It is the ratio of dividend paid per share and EPS ( Earning per share )Double entry bookkeeping - It is a method of bookkeeping in which every transaction isrecorded two accounts. Once in debit side and once in credit side.
E
Earning per share - Earnings made by a company in a financial year divided by number ofissued shares.
Equity - Value of a business. Equity = Total assets - Total liabilities
Ex-divided - Ex-dividend means without dividend. When a seller makes a ex-dividend salescontract then he is entitled to get dividend or interest payment.
EBIT - Earning before interest and taxes
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EBT - Earning before tax
EAT - Earning after tax
F
Face value - The amount mentioned on face of a bond certificate.
Fixed assets - Assets which can be seen such as machinery
Financial year - A period of 12 months from 1st April to 31st march
Fundamental analysis - Analysis of a company based upon financial and operationalperformance.
Fiscal policy - Income and expenses management by Government.
Flat rate - Rate of interest in a contract which remains same irrespective of market rate in future.
Floating rate - Rate of interest which changes with change in market rate.
Fund manager - A person who manages a mutual fund and tries to maximize fund's returnswhile sticking to fund's objectives.
G
Gearing- It is the ratio of debt to equity
Goodwill- Intangible assets that defines firm's reputation in monetary terms.
Gross profit= Net sales - Net purchases - Direct expenses
GDP- Gross domestic product is the aggregate value of goods and services produced by everyperson of a nation.
GST- Goods and services tax is the same tax system for everything. It is proposed that GST will
replace the multi tax system in India by 2015.
H
Hedging - Hedging is a technique used by investors to protect themselves from adverse pricemovements. Derivatives are used for hedging in which hedgers takes the risk of pricefluctuations.
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Hedge funds - Mutual funds which invests in derivatives
I
Index - It is statistical measure used to find price variations in market. In stockmarkets most dominating stocks are grouped to make an index. For example - Sensex.
Income statementA statement that represents both income and expenditure of a business during aspecific period of time.
IPO - Initial public offer is issue of stocks for the first time in the market.
Intangible assets
Assetswhich cant be seen but have value for business. ForexampleGoodwill.
IndemnityA legal contract under which one party promises to pay another for anyloses incurred to them by their acts.
Interest rate risk Risk that value of financial assets will deteriorate because of fallin interest rate. For example value of bonds decreases with decrease in interest rate.
Irredeemable stocksStocks which cant be exchanged for cash in future.
Indirect Costs - Indirect cost is a cost incurred on product that is not directly relatedto its production.
J
Junk fundA fund which invests investors money in junk investments means high
risk investments which high returns.
K
KYCKnow Your Customer policy is mandatory in India and every investorirrespective of his investment volume needs to furnish his identity and residencedetails.
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L
Libor
London
LiquidityAbility of a business to pay off its short term debts with current assets.Currently NISL is facing liquidity crunch.
Liquid assetsAssets which can be readily converted into cash
Liquid ratioLiquid assets/Current liabilities
Limited liabilityLiability of an individual or a business up to the value of
investment made in a business
M
Monopoly - A situation in market where there are many buyers but a single seller exist.
Money market - Market dealing in short term lending and borrowing of funds. Also know as
Cash market.
Monetary policy - Set of actions by Central bank of a country ( RBI in case of India) to controlthe supply of money. These actions included increase in interest rate, open market purchases,changing commercial bank's reserve funds ratio (SLR) etc.
Marginal cost - Additional cost to produce an extra unit of product.
Margin - Amount of profit added to cost price of each unit of a product
Margin call - Margin call term is used in two situations. First- Whenever a lender gives asecured loan and loan value is a fixed percentage of loan then whenever the value of securitydecrease below the decided ratio then lender given a margin call to borrower to bring loan tosecurity ratio to decided level. Secondlyin stock exchanges traders trades in various securities
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by paying 20-30% of the value of securities. Whenever the value of security goes below thatmargin, broker gives margin call to trader to bring the margin to desired level.
Mark-to-market- As explained above while defining margin call, value of assets in case of
securities is measured on daily basis. If the trader's asset value increased, increased value istransferred to his account. In case the value of assets decreased margin call is made to adjust themargin.
N
NPV -Net Present Value is aggregate of future cash flows from a project minus total costs. NPVis a capital budgeting technique used to check feasibility of projects.
Net profit -Net profit is Gross profit minus indirect cost. See indirect costs
Net worth -Net assets - Total liabilities
Nationalization - When Government takes control of a business, this is known asnationalization.
NAV -Net Assets Value is mutual fund's per unit exchange traded price
O
Opportunity cost - Additional cost in production of an addition unit of product.
Options - Option is right to buy at pre-determined price at a future date. Option is used forhedging. Options safeguards option-holder from future price fluctuations.
Overdraft - Facility given by a bank which allows its customers to withdraw more money thanaccount balance. Overdraft generally have high rate of interest as borrower can demand andreturn the loan anytime.
P
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Preference shares - A type of shares having no voting rights and have higher rate of dividend.
Ponzi schemes - It is a kind of fraud scheme which use Network marketing as a tool. Investorsare paid out of new investments. These schemes end when new investments stop coming and
large number of investors wants to withdraw their money. Latest Ponzi scheme in India was"Speak Asia".
PLR - Prime lending rate is the minimum rate of interest that is to be charged by a bank. Eachbank decides its own PLR.
R
ROI - Rate on investment is return divided by value of investment
Redemption - Maturity date of a security or a bond
Recession - An economic situation of negative growth
Repo rate- Rate at which Central bank (RBI in case of India) lends money to commercial banks
Reverse repo rate- Rate at which commercial banks lends to central bank
Right issue - Issue of shares in which existing shareholders gets right to buy shares in proportion
of their existing holding
Risk free return - Rate of return, normally it is 90 days bills issued by a national government
S
Stagnation - An economic situation of slow economic growth, high rate unemployment andinflation.
Shorting - Selling securities which an investors don't have in expectation of price drop
U
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Underwriters - In case of an IPO, new companies makes contracts with underwriter whereunderwriters promises to purchase unsubscribe shares.
W
Working capital - Money required by a business to run its day to day business. Working capital= Current assets / Current liabilities
Warrants - A document which gives right to holder to get shares at stated price
Y
Yield - Yield is the return on investment which may in form dividend or interest
Banking Terminology
ADR- American Depository ReceiptAGM- Annual General MeetingAIRCSC- All India Rural Credit Survey CommitteeAFS- Available For Sale
ASSOCHAM - Associated Chambers of Commerce and Industry of IndiaATM- Automated Teller MachineBIS- Bank for International Settlements
BoP- Balance of PaymentsCAD- Capital Account DeficitCAG -Controller and Auditor General of IndiaCAMELS- Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, Systems &ControlsCBS- Consolidated Banking Statistics
CC- Cash CreditCD- Certificate of DepositCF- Company FinanceCII- Confederation of Indian IndustriesCP- Commercial PaperCPI- Consumer Price IndexCR- Capital ReceiptsCRR- Cash Reserve Ratio
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CSIR- Council of Scientific and Industrial ResearchCSO- Central Statistical OrganisationDBOD- Department of Banking Operations and DevelopmentDBS- Department of Banking Supervision, RBIDCA- Department of Company Affairs,
DCCB- District Central Cooperative BankDCM- Department of Currency Management, RBIDD- Demand DraftDDS- Data Dissemination StandardsDICGC- Deposit Insurance and Credit Guarantee Corporation of IndiaECGC- Export Credit and Guarantee CorporationECS- Electronic Clearing SchemeEEA- Exchange Equalization AccountEPF- Employees Provident FundFDI- Foreign Direct InvestmentFEMA- Foreign Exchange Management Act
FICCI- Federation of Indian Chambers of Commerce and IndustryFII- Foreign Institutional InvestorFPI- Foreign Portfolio InvestmentGDP- Gross Domestic ProductGDR- Global Depository ReceiptGFD- Gross Fiscal DeficitGIC- General Insurance CorporationGPD- Gross Primary DeficitHDFC- Housing Development Finance CorporationHFT- Held For TradingIBS- International Banking StatisticsICAR- Indian Council of Agricultural ResearchICICI- Industrial Credit and Investment Corporation of IndiaICMR- Indian Council of Medical ResearchIDBI- Industrial Development Bank of IndiaIFC- International Finance CorporationIFCI- Industrial Finance Corporation of IndiaIIP- Index of Industrial ProductionIMF- International Monetary FundIRBI- Industrial Reconstruction Bank of IndiaISDA- International Swaps and Derivative AssociationISIC- International Standard Industrial ClassificationISO- International Standards OrganizationLBS- Locational Banking StatisticsLERMS- Liberalised Exchange Rate Management SystemLIC- Life Insurance Corporation of IndiaMCA- Ministry of Company AffairsMIS- Management Information SystemMMSE- Minimum Mean Squared ErrorsNABARD- National Bank for Agriculture and Rural Development
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NASSCOM- National Association of Software and Services CompaniesNBC- Non-Banking CompaniesNBFC- Non Banking Financial CompaniesNEER- Nominal Effective Exchange RateNFA- Non-Foreign Exchange Assets
NGO- Non-Governmental OrganizationNHB- National Housing BankNPA- Non-Performing AssetsNSC- National Statistical CommissionNSSF- National Small Savings FundOD- Over DraftODA- Official Development AssistanceOMO- Open Market OperationsPACS- Primary Agriculture Credit SocietiesPDAI- Primary Dealers Association of IndiaPDO- Public Debt Office
PIO- Persons of Indian OriginPO- Principal OfficePRB- Primary Revenue BalancePSE- Public Sector EnterprisesPUC- Paid Up CapitalRD- Revenue DeficitRDBMS- Relational Database Management SystemRE- Revenue ExpenditureREC- Rural Electrification CorporationREER- Real Effective Exchange RateRIDF- Rural Infrastructure Development FundRoC- Registrars of CompaniesRR- Revenue ReceiptsRRB- Regional Rural BankRTP- Reserve Tranche PositionRWA- Risk Weighted AssetSAS- Statistical Analysis SystemSCARDB- State Cooperative Agriculture and Rural Development BankSCB- State Cooperative BankSCB- Scheduled Commercial BankSDDS-Special Data Dissemination StandardsSDR- Special Drawing RightSEBI- Securities and Exchange Board of IndiaSIFI- Systemically Important Financial IntermediariesSEBs- State Electricity BoardsSGSY- Swarnajayanthi Gram Swarrojgar YojanaSHGs- Self-Help GroupsSIDBI- Small Industries Development Bank of IndiaSIDC- State Industrial Development CorporationSJSRY- Swarna Jayanti Shahari Rojgar Yojana
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SLR- Statutory Liquidity RatioSMG- Standing Monitoring GroupSNA- System of National AccountsSRWTO- Small road & Water Transport OperatorsSSI- Small-Scale Industries
STRIPS- Separate Trading for Registered Interest and Principal of SecuritiesTB- Treasury BillsTC- Temporary ChangeTT- Telegraphic TransferTFTS - Trade for Trade SettlementUCB- Urban Cooperative BankUCN- Uniform Code NumberUNDP- United Nations Developement ProgrammeUNICO- Umbrella Organisation for Large Cooperative Banks in EuropeUNDP- United Nations Development ProgrammeUNIDO- United Nations Industrial Development Organisation
UNME- Urban Non-Manual EmployeesUTI- Unit Trust of IndiaVC- Venture CapitalWPI- Wholesale Price IndexWTO- World Trade Organisation
Y-o-Y- Year-on-YearYTM- Yield to MaturityZTC- Zonal Training Centre
Sports Terminology
Athletics
baton, bell lap, decathlon, discus, false start, field, foul, hammer, heptathlon,high jump, hurdles, javelin, lane, lap, long jump, marathon, middle-distance,pole-vault, relay, record, shot put, sprint, starting blocks, steeplechase, track,track and field, triple jump, Cross Country, etc.
Badminton
Alley, Back Alley, Backcourt, Balk, Baseline, Carry, Center or Base Position,Center Line, Clear, Court, Drive, Drop, Fault, Feint, Flick, Forecourt, HairpinNet Shot, Halfcourt Shot, Kill, Let, Long Service Line, Match, Midcourt, Net
Shot, Push Shot, Racquet, Rally, Serve, Service Court, Short Service Line,Shuttlecock, Smash, Wood Shot etc.
Baseball Pinching, Home run, Base runner, Throw, Perfect game, Strike, Put out, etc.
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BilliardsCue, cannon, baulk, pot scratch, long jenny, short jenny, frame, spider, shortand long rest, in-off, etc.
Boxing
Accidental Butt, Bleeder, Bolo Punch, Bout, Brawler, Break, Buckle, Canvas,Card, Caught Cold, Clinch, Corkscrew Punch, Cornerman, Counterpunch,
Cross, Cutman, Dive, Eight Count, Glass Jaw, Haymaker, Kidney Punch LiverShot, Low Blow, Mauler, Neutral Corner, Plodder, Ring G eneralship,Roughhousing, Southpaw, Spar, Stablemate, Technical Knockout, WalkoutBout, Whiskers etc.
Bridge
Contract bridge, duplicate bridge, tricks, suite , rubber, trump, grand slam, littleslam, etc.
Billiards &
Snooker Pull, Cue, Hit, Object ball, Break shot, Scoring, Cushion billiards, etc., etc.
BoxingKnock. out, Round, Ring Stoppage, Punch, Upper-cut, Kidney punch, Timing, Footwork, etc.
Chess Gambit, stalemate, move, resign, checkmate,etc.
Cricket
Hat-trick, maiden, follow-on, declare, bowled, caught, run-out, leg beforewicket(LBW), stumped, striker, slips, gully, short leg, silly, mid-on, point,cover, mid-off, bouncer, beamer, googly, full toss, drive, cut, pull, hook, flick,etc.
Cycling Sprint, Time trial, Point race, Trackrace, etc.
Football
Attacker, Back Heel, Back Pass, Ball Carrier, Bending the Ball, Bicycle Kick,Center Spot, Corner Flag, Corner Kick, Cross, Defender, Direct Free Kick,Dribble, Far Post, FIFA, Futsal, Give and Go, Goal Line, Goal Mouth,Goalkeeper, Header, Indirect Free Kick, Inswinger, Kickoff, Man to ManMarking, Midfielder, Nearpost, Obstruction, Offside Trap,Offside, One-TouchPass, Penalty Spot, Red Card, Striker, Sweepe, Tackle, Volley etc.
Golf
ace, albatross, double eagle, all square, approach putt, apron, ball mark,ballooning, beach, birdie, blind shot, bogey, bunker, caddy, chip, Claw grip,condor, dogleg, dub, flag, Four-Ball, Mulligan, off the deck, peg, sand trap, teeshot etc.
Gymnastics
Aerial, Back Handspring, Back Somersault, Double Back, Double Twist, Flyaway,Front Hip Pullover, Front Pike Somersault, Front Split, Front Walkover, Gienger,Handstand, Hip Circle, Miller, Pike, Rudi, Straddle, Swedish Fall, Tsukahara,Tuck, Whip Back etc.
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Hockey
Centre, defender, forward, half, penalty-stroke, penalty corner, push-in, free-hit, striking circle goal, goal-line, touch-line, goal keeper, off-side, foul, stick,carry, dribble, tiebreaker, trapping, etc.
Horse
Racing Race course, steeplechase, bets, bookies, jockey, punter, etc.
Judo Cocoa, Blue, white, Green belt, etc.
Polo Mallet, bunker, chukker, handicap, goal, sixty yarder, etc.
Shooting Bag, bulls eye, marksmanship, plug, skeet, etc.
Swimming
Add Up, Anchor, Approved Meet, Backstroke, Banner, Beep, Bonus Heat, Bottom,Breaststroke, Bull Pen, Bulletin, Cap, Car pool, Cards, Check-In, Check-Out,Course, Dryland, False Start, Freestyle, Gun Lap, Heats, Jump, Lane Lines, Paddle,Parka, Pool, Pull Buoy, Relays, Split, Stroke, Yardage etc.
Table
Tennis
Backhand, Backspin, Block, Chop, Closed, Dead ball, Doubles, Drive, Dropshot, Expedite rule, Forehand, Inverted, Let, Lob, Long pips, Loop, Match,Medium-long, Open, Penhold, Pips-in, Pips-out, Push, Receive, Seemiller,Serve, Set, Shakehands, Short, Sidespin, Skunk, Smash, Topspin etc.
Tennis
smash, cross-court, passing shot,backhand, forehand,slice, top-spin,serve,dropshot, lob, down-the-line, deuce, tie-breaker, set, game, grand slam, ace,volley, etc.
Volleyball
Assist, Attack, Attack line, Back row attack, Block, Block assist, Campfire
defense, Carry, Center line violation, Chester, Coach kill, Cover the hitter, Cutshot, Deep dish, Dig, Facial, Fish, Floater, Friendly fire, Free ball, Heat,Husband-and-wife-play, Jedi defense, Joust, Jump serve, Kill, Kong, Line shot,Lollipop, Mintonette, Monument valley, Net violation, Paint brush, Pancake,Pepper, Prince/Princess of whales, Quick set, Rainbow, Red card, Redwood,Roof, Screening, Service ace, Set, Shank, Side out, Six-pack, Sizzle the pits,Spike, Strong side, Stuff, Tandem, Tip, Tool, Trap set, Tuna, Whale, Yellowcard etc.
Weight
Lifting
Bulking, bitch tits, shredded, Six pack, Feeling the Burn, Power Rack, SmithMachine, Muscle Memory, Pump and Toners, Cardio Bunny, Plateau, Vascularity,Supersets, Drop Sets/Strip Sets, Periodization, Pyramiding, Standard Plates andBars etc.
Wrestling Free style, Hal Nelson, Point, Heave, etc.
Basic accounting terms
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comes should be recognized at the time when they are actually realized.
Amortization- It is the splitting off a loan or intangible assets over a future period
Annual report- Report issued by a company at the end of year containing all important financial
statements and preview of management's goals.
Authorized share capital- Maximum share capital a company is authorized to issue
B
Bad debts- Noncollectable receivables
Balance sheet- Statement that summarizes assets and liabilities of a business entity
Bankruptcy- A state in which an individual or legal entity is unable to pay off his debts so he surrenders
his assets to the court.
Bill of exchange- A promise to certain amount of money to holder at a specified date
Bill of lading: A document which represents ownership of goods in transit i.e. goods during shipping
from one place to another.
Bills Payable : A bill which shows that a firm has to pay money to the person or firm whose name is
mentioned in the bill.
Bills receivable : A bill which shows that money is to be paid to firm from those whose names arementioned in the bill.
Bonus shares: Shares which are issued to the existing shareholder w
Bookkeeping : This process includes analyzing, classifying and recording from various sets of books in a
very systematic way.
Book value: Historical cost less accumulated depreciation. Generally, it is accounting value.
Brought down : Written as b/d. It represents the opening balance of an account.
Brought forward: Written as b/f. This term is generally used to open an account for the current year by
posting the closing balance of previous year.
C
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Capital expenditure : Cost incurred to acquire fixed assets which spreads benefits in future.
Capital work-in-progress : Cost incurred in those assets which are not ready yet for use.
Carried down: Written as c/d. This term a synonym for the term carried forward and used to balance an
account.
Carried forward :Written as c/f. Term used to transfer the balance from one period to the another.
Carriage inwards: These are the expenses incurred for transporting the goods purchased by the firm.
Carriage outwards : Expenses incurred for transporting goods sold by the firm.
Cash: It broadly covers currency and generally accepted equivalents of cash, like cheques, drafts and
demand deposits in bank.
Cash at bank : Deposit with bank.
Cash Book : A book of all transactions or entries for cash payments and receipts.
Cash on hand : Cash available and undeposited.
Closing stock/ Closing inventory : Goods remaining at the end of an accounting period.
Conservatism principle: Accounting concept that states that all expected losses should be recorded but
not expected gains.
D
Depreciation: Decrease in value of assets or the cost of an asset is allocated to that period during which
asset is used.
Discount : A deduction from cost of something , offered by seller.
Dividend: A share of profit which is to be distributed to the shareholders.
Dividend Yield: Ratio of current dividend to the current market price of a share.
Double-entry: Transaction entered in both sides debit as well as credit i.e. every transaction has to
entered twice.
Doubtful debts : A collection of that debt which is doubtful.
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Drawings : Withdrawing cash or goods from business for personal use.
Dual Aspect Principle : Also known as Duality Principle. This fundamental principle of accounting
states that every transaction has a dual effect and should be recorded at two places.
Du-Pont System: The System merges the income statement and balance sheet into two measures ofprofitability: Return on Assets (ROA) and Return on Equity (ROE).
EBIT: Earnings before interest and tax.
Entity Principle : The business firm is treated as a separate entity for the purpose of accounting.
Equity: A stock or any other security representing an ownership interest.
Exchange Rate : The rate at which one currency can be converted into another.
Expenses : the cost i.e. material or services used in an operation during a specified period.
F
Face Value: Commonly referred to the amount paid to a bondholder at the maturity date, given that
the issuer doesn't default.
Financial Asset : An intangible asset that derives value. Stocks, bonds, bank deposits etc are all examples
of financial asset.
Financial Ratio : Ratio based on firm's financial statement which reflects firm's financial condition andperformance.
Financial Statement: A formal record of the financial activities of a business, person or other entity.
Financial data is presented in a structured manner.
Fixed Assets : It includes premises, plant and machinery, furniture, land and buildings etc.
Fixed Charge: A required payment under a contract.
Freehold Premises : Premises which are not subject to any charge.
Funds Flow Statement : A statement which shows inflow and outflow of funds.
G
Gross Profit Margin : Ratio of Gross profit to net sales i.e. gross profit as a percentage of net sales.
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H
Holding Company : A parent company which holds enough stock in another company to hold its board
of directors.
Human Resource Accounting (HRA) : Measuring the cost and value of employees and managers in theorganisation. It includes the measurement of the cost incurred to recruit, hire, train and develop
employees and managers.
HRA Report : After measuring the cost and value of its people, the organisation prepares a report which
is known as HRA Report.
I
Imprest: Maintained cash to meet the sundry expenses.
Income Due but not received: Receivable income but not yet received.
Income Received but not due: Income received during current accounting period which is supposed to
be received at some future date.
Income statement : Profit and loss statement that measures the firm's operations.
Insolvency : Inability of debtors to meet their debt obligations i.e. lack of liquidity.
Intangible assets: Assets like patents, copyrights, goodwill etc which are valuable but are not physical in
nature.
Interest earned ratio: Ratio which measures firm's ability to meet its interest payments out of its
annual earnings i.e. EBIT / Interest expense.
Interest rate risk : Uncertainty in expected returns of securities due to changes in interest rates.
Inventory: Stock of goods or articles.
J
Journal : A daily record of transactions in which each transaction is based on double entry bookkeeping
i.e. for all transactions both debits and credits are to be entered.
L
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Ledger: A record of all individual accounts of a business or firm.
Liability : A financial obligation which arises due to some past events or transactions in business.
M
Marketable securities : Securities which can easily be converted into cash.
Market value: Mutually accepted price of an asset between buyers and sellers. It is price at which an
asset would trade in market.
Matching Principle : States that expenses should be recorded during that period when it is incurred,
regardless the period of transfer of cash.
Miscellaneous expenditure : Lower monetary value costs are misc expenditure like various meals, ticket
prices etc.
Mortgage : A temporary pledge of property to the creditor as a security for an obligation or the debt
repayment.
N
Net block : Net block is what asset are worth to the company. Generally, it is gross block less
accumulated depreciation.
Net current assets : Current assets less current liabilities.
Net income: Total earnings of company. It represents firm's total profit or loss, calculated by taking all
revenues and deducting all the costs of the business.
Net profit margin : Net profit or income as a percent of sales i.e. net Income/ Sales.
O
Operating profit margin : Operating income / Revenue.
Outstanding expenses: Unpaid expenses.
Overdraft : When money is withdrawn from bank account and account balance is below zero.
P
Paid up capital : The amount of company's capital which has been funded by shareholders.
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Patent: The sole right to make and sell the product for set period of time.
Petty cash book : Record of entries for small amount payments.
Prepaid expenses : Expenses which have been paid but benefits of which is yet to be received.
Profit and loss account : A statement which shows all revenues and expenses of firm for a given time
period. Subtracting expenses from revenues gives net income of the firm for that time period, that's why
known as profit and loss account.
Proposed dividend : Company's board of directors declare an amount of dividend every year and this
amount is noted as a liability in balance sheet. The rate of proposed dividend can be changed by
shareholders in annual general meeting.
Provision for doubtful debts : Keeping aside an amount out of the firm's profit to meet the losses due to
doubtful debts.
Provision for tax: Keeping aside an amount to meet future tax liability.
R
Realization principle : It states that recognize the revenue only when it is earned.
Redeemable Preference Shares: Preference shares which are redeemed by issuing company at an
agreed price on a specified date.
Reserves and surplus : Accumulated profits of the firm.
Retained earnings: A portion of net income of company which is not distributed in shareholders and
reinvested in core business.
Return on equity : Equity earnings / Net worth.
S
Sales book : A complete record of sales which are made on credit.
Sales Returns Book: A record of entries of those goods which are returned by customers and earlier
sold on credit.
Secured loans : Loan backed by an asset belongs to the borrower, just to reduce the risk for the lender.
Sinking fund: Fund created by keeping aside some money annually for gradual repayment of debt.
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Sundry expenses : Miscellaneous expenses.
T
Total asset turnover ratio: Net sales/ Total assets.
U
Unsecured loans : Loans which are not backed by any security.
Common abbreviations
a.m.- Ante Meridiem
A.A.I.- Airport Authority of India
ATM- Automatic Teller Machine
AIDS- Acquired Immuno Deficiency Syndrome
BBC- British Broadcasting Corporation
ASEAN- Association of South-East Asian Nations
BSF- Border Security Force
BCG- Bacillus Calmette Guerin
CTBT- Comprehensive Test Ban Treaty
ECG- Electro Cardio Graph
EPF- Employee Provident fund
ESI- Employee state insurance
EST- Eastern standard timeFAO- Food and agriculture organization
FBI- Federal bureau of investigation
FCI- Food corporation of India
FIR- First information report
GATT- General agreement on tariffs and trade
GMT- Greenchwich mean time
ICICI- Industrial credit and investment corporation of India
INSAT- Indian National Satellite
ISI- Inter service organisation
ISRO- Indian space research organisation
IST- Indian standard time
LTTE- Liberation of tigers tamil ealern
MODVAT- Modified value added tax
p.m.- Post meridiem
PAN- Permanent account number
PCO- Public call office
PIN- Postal index number
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PTI- Press trust of India
POK- Pakistan occupied Kashmir
RSVP- Repodendeze's il vous plait
SHO - Station house officer
TADA - Terrorist and disruptive act
UTI - Unit trust of IndiaWHO- World health organization
List of Bank slogans
Multinational Bank Slogans
Name of the Bank Punch line
CITI Bank Let's get it done
Standard Chartered Bank Your Right Partner
HSBC Bank The World's Local Bank
Royal Bank of Scotland Make it happen
BNP Paribas The bank for a changing world
JPMorgan Chase Bank The right relationship is everything
Deutsche Bank A passion to perform
Scotia Bank Youre richer than you think
American Express Bank Do more
Barclays Bank Fluent in finance
DBS Bank Living, Breathing Asia
Indian Bank Slogans
Bank Name Bank Slogan
Allahabad Bank A tradition of trust
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Andhra Bank Much more to do. With YOU in focus
Bank of Baroda India's International Bank
Bank of India Relationships beyond Banking
Bank of Maharashtra One Family One Bank
Bank of Rajasthan Together we Prosper
Canara Bank It's easy to change for those who you love, Together we Can
Central Bank of India Build A Better Life Around Us, Central to you since 1911
Corporation Bank Prosperity for all
Dena Bank Trusted Family Bank
Federal Bank Your Perfect Banking Partner
HDFC Bank We Understand Your World
HSBC Worlds Local Bank
ICICI Bank "Hum Hai na..."
IDBI Bank Banking for all; "Aao Sochein Bada"
Indian Bank Taking Banking Technology to Common Man, Your Tech-friendly bank
Indian Overseas Bank Good people to grow with
J & K Bank Serving to Empower
Karur Vysya Bank Smart way to Bank
Lakshmi Vilas Bank The Changing Face of Prosperity
Oriental Bank ofCommerce
Where every individual is committed
Punjab and Sindh Bank Where series is a way of life
Punjab National Bank The Name you can Bank Upon
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State Bank of India The Nation banks on us; Pure Banking Nothing Else; With you all the
way
State Bank of Hyderabad You can always bank on us
State Bank of Mysore Working for a better tomorrow
State Bank of Patiala Blending Modernity with Tradition
State Bank of Travancore A Long Tradition of Trust
South Indian Bank Experience Next Generation Banking
Syndicate Bank Your Faithful And Friendly Financial Partner
The Economic Times Knowledge is Power
UCO Bank Honors Your Trust
Union Bank of India Good people to bank with
United Bank of India The Bank that begins with U
Vijaya Bank A Friend You can Bank Upon
Yes Bank Experience our expertise
Government Schemes
Central Government schemes in India
Aam Aadmi Bima Yojna
Started- 02-10-2007
Objective- To provide life and accident insurance to people without land living in rural areas
Working- Both State government and National government contributes Rs 200 each towards insurance
one family member of age 18-59.
Moneypaidtoinsurancebeneficiary
In case of natural death - Rs 30,000 In case death due to accident or permanent disability - Rs 75,000
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In case of permanent disability due to any accident - Rs 37,500
Doodh Ganga
Goal - Provide interest free loan and capital subsidies to diary farmers
Indira Awaaz Yojna
Started- 1985
Objective- Prociding financial assistance to rural and urban poor for construction of houses
Working- Financial assistance of Rs 70,000 in plain areas and Rs 75,000 in difficult areas is provided.
Construction of sanitary latrine and smokeless chullah is mandatory Hiring a contractor is banned House is allotted in the name of woman or jointly in the name of both man and woman.
Prefernceisgivento
Mentally challenge Physical challenged Woman headed houses Transgenders Widows and children of members of defence or police forces who died on duty
Janani Suraksha Yojana
Started - 12 April 2005
Objective - JSY aims at reducing maternal deaths by promoting deliveries in public and private health
institutions
Working - Mother should be at least 19 year old and belong to BPL or SC/ST category.
Government provides
Rs 500 in case of home delivery Rs 600 in case of mother from municipal/corporation area delivering baby in private or public
health care center
Rs 700 in case of mother from rural area delivering baby in private or public health care center
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Ladli Scheme
Started- 20 August 2008
Aim- Objective of this scheme was to raise the status of girl child and change the social mindset ofpeople towards girls in Haryana. (Separate scheme for Delhi)
Working - Financial assistance of Rs 5000 per family per year is given by state government on the birth
of second girl child. This scheme is available for parents who are domiciles of Haryana.
Ladli Laxmi Yojna
Aim- Objective of this scheme was to raise the status of girl child and change the social mindset of
people towards girls in Madhya Pradesh.
Working- Government purchases National saving certificate worth Rs 6000 per year for four years for
every girl child born after 01-04-2008 and whose parents are domicile of Madhya Pradesh.
Additional money paid on following events :-
At the time of admission in 4th standard - Rs 2000 At the time of admission in 9th standard - Rs 4000 At the time of admission 11th standard - Rs 7500 During higher secondary education - Rs 200 each month On the completion of 21 years she could receive even Rs 1 lac
Mahatma Gandhi National Rural Employment Guarantee Act
Started- 25 August 2005
Objective- To provide 100 days employment guarantee per year to unskilled labourers
Working- Government provides 100 days employment guarantee per year to unskilled labourer to do
public works for which he is paid Rs 120 per day. In case Government is unable to provide employment
to labourers then it need pay labourers for 100 days at their home.
Budget aloocated for MNREGA- Rs 45000 crores ( 2012-2013)
Midday Meal Scheme
Started- Started on different dates in various states in India. It was first introduced in Uttar Pradesh
Objectives- Providing free lunch on working days to primary and upper primary students of government
schools in India. This scheme aims at promoting education and removal malnutrition in children.
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National Pension Scheme India
Started - 1 January 2004
Objectives- Provides social security to Government employees on retirement
Working- 10% of basic salary is deducted from basic salary and DA and contributed to pension fund.
Central government makes equal contribution to the fund.
Pradhan Mantri Gram Sadak Yojana
Started- 5 December 2000
Objective- To provide roads in villages with population of 1000+
Rashtriya Krishi Vikas Yojana
Started- August 2007
Objective- This scheme aims at achieving 4% annual growth in agriculture sector.
Working- Rs 5875 crores will be in agricultural sector in 11th five year plan to improve agricultural
productivity.
Rashtriya Swasthya Bima Yojana
Started- April 1, 2008
Objective- Providing health insurance to poor people living below poverty line and holding yellow card
Working- Anybody holding yellow card need to register for this scheme and get a smart card. Family get
insurance of Rs 30,000 per family. This is cashless facility to get treatment in public as well as privatehospitals.
Sampoorna Grameen Rozgar Yojana
Started- 25 September 2001
Aim- Started by cobining two ongoing schemes namely Jawahar Gram Smridhi Yojana and employment
Assurance Scheme. This scheme was started to provide supplementary employment so that labourers in
rural areas can earn extra and thus providing food security to them.
Working - Budget of Rs 10,000 crores has been alloted which is to be provided in ratio of ratio of 75:25
by Center and State and government.
Sarva Shiksha Abhiyan
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Started- 2001
Aim- Provide useful and free education to children in the age group of 6 -14 years under RTE act 2009
Funds allocated- Rs 61,734 crores allocated in 2011-12
Swabhiman
Started- 10 February 2011
Aim- To provide banking facilitates in rural areas with banking services. Goal of this scheme is to start
banking services in 20,000 villages without banking services with a population of 2000 by March 2012
Swarnajayanti Gram Swarozgar Yojana
Started- 1 April 1999
Objective- SGSY provide assistance to rural people living below poverty line to take up self
employment.
Swavalamban
Started- 2010 (Will be closed on 2017-2017)
Goal- To encourage workers working in unorganized sector to save for their retirement
Working- Workers must invest contribute minimum Rs.1000 to maximum Rs.12000 per year into their
NPS account. Government will contribute Rs 1000 per year to NPS account per year.