Important Financial Terms for Interview and Bank Exams

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

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
Germany	–
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