Important Financial Terms

  • AGM: Annual General Meeting
  • Asset turnover ratio: Net assets / Total turnover
  • Acid test ratio: Highly liquid assets / current liabilities
  • ADR: American Depository Receipt
  • AMC: Asset Management Company
  • ADB: Asian Development Bank
  • Audit: Annual financial statement and stock checking
  • ATM: Asynchronous Transfer Mode / Automated Teller Machine
  • Book-keeping: recording financial statements in accounts books.
  • Bear market: Market situation in which Inventor think market will fall.
  • Bull Market: Market situation in which Inventor think market will grow.
  • BoP: Balance of Payments
  • BSR: Basic Statistical Returns

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  • BOP: Balance of Payment (difference between Exports and Imports)
  • Capital: Assets – Liabilities
  • CD: Certificate of Deposit
  • CPI: Consumer price index
  • CR: Capital Receipts
  • CBS:  Consolidated Banking Statistics
  • CRR: Cash Reserve Ratio
  • CP: Commercial Paper
  • Depreciation: reduction in value of a asset over a time period because asset is being used.
  • Dividend: profit share paid by company to its share holders.
  • DID: Discharge of Internal Debt
  • Equity: Total Aassets – Total Liabilities
  • EBIT: Earning before interest and taxes
  • ECS: Electronic Clearing Scheme
  • EBT: Earning before tax
  • EAT: Earning after tax
  • Fixed Assets: Physical assets which are kept for long time (like land or machines)
  • FCA: Foreign Currency Assets
  • FCCB: Foreign Currency Convertible Bond

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Financial Year: 12 months period (In USA Financial year is called Fiscal Year).

Financial Year (Fiscal Year) of World’s Top 15 Economies:

Economy Financial Year
United States of America 1 July to 30 June
China 1 January to 31 December
Japan 1 April to 31 March
United Kingdom 6 April to 5 April
France 1 January to 31 December
India 1 April to 30 March
Italy 1 January to 31 December
Brazil 1 January to 31 December
Canada 1 April to 31 March for Government and 1 January to 31 December for Individuals
South Korea 1 January to 31 December
Russia 1 January to 31 December
Australia 1 July to 30 June
Spain 1 January to 31 December
  • Gross profit: Net sales – Net purchases – Direct expenses
  • GDP: Gross domestic product
  • GDR: Global Depository Receipt
  • GST: Goods and Services Tax
  • GFD: Gross Fiscal Deficit
  • GPD: Gross Primary Deficit
  • IPO: Initial Pubic Offer (Stock offered first time in Financial Market)
  • IBS: International Banking Statistics
  • Intangible assets: Assets which are not present in physical form (For example: Software)
  • ITRS: International Transaction Reporting System
  • KYC: Know Your Customer

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  • Liquid assets: Assets which can be converted in cash
  • Liquid ratio: Liquid assets/Current liabilities
  • LAF: Liquidity Adjustment Facility
  • Monopoly: When single seller have dominance on market
  • M1: Narrow Money
  • M3: Broad Money
  • MSS:  Market Stabilisation Scheme
  • Net profit: Gross Profit – Indirect cost
  • NPV: Net Present Value
  • Net worth: Net assets – Total liabilities
  • NFA: Non-Foreign Exchange Assets
  • NAV: Net Assets Value
  • NPA: Non-Performing Assets
  • OFI: Other Financial Institutions
  • OMO: Open Market Operations
  • OLTAS: On Line Tax Accounting System
  • PLR: Prime lending Rate
  • PDO: Public Debt Office
  • ROI: Rate on investment
  • RDB: Rural Development Bank
  • RD: Revenue Deficit
  • RLA: Recoveries of Loans & Advances
  • RLC: Repayment of Loans to Centre
  • RWA: Risk Weighted Asset
  • Recession: Economy showing negative growth
  • SFC: State Financial Corporation
  • SGL: Subsidiary General Ledger
  • SLR: Statutory Liquidity Ratio
  • TBs: Treasury Bills
  • WPI: Wholesale Price Index
  • Working Capital: Current assets / Current liabilities
  • WSS: Weekly Statistical Supplement
  • YTM: Yield to Maturity

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Jaspreet (Masters in Commerce-LLB) not only have exceptional command of Accounts and Commerce subjects but also have keen interest in Law. He is consistent in producing high quality assignments.

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