Important Financial Terms

Important Financial Terms for Interview and Bank Exams
  • 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
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

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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 Singh

Jaspreet (Masters in Commerce) 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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