General Knowledge

Important Financial Terms

Important Financial Terms for Interview and Bank Exams
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  • AGM: Annual General Meeting
  • Asset turnover ratio: Net assets / Total turnover
  • Acid test ratio: Highly liquid assets / current liabilities
  • AMC: Asset Management Company
  • Audit: Annual financial statement and stock checking
  • 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.

Related: World’s biggest Export Countries and their main Exports

  • BOP: Balance of Payment (difference between Exports and Imports)
  • Capital: Assets – Liabilities
  • CPI: Consumer price index
  • 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.
  • Equity: Total Aassets – Total Liabilities
  • EBIT: Earning before interest and taxes
  • EBT: Earning before tax
  • EAT: Earning after tax
  • Fixed Assets: Physical assets which are kept for long time (like land or machines)

Related: How many types of Bank Cheque (Check)

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
  • GST: Goods and Services Tax
  • IPO: Initial Pubic Offer (Stock offered first time in Financial Market)
  • Intangible assets: Assets which are not present in physical form (For example: Software)
  • KYC: Know Your Customer

Related: Banks in India and their Tag Lines

  • Liquid assets: Assets which can be converted in cash
  • Liquid ratio: Liquid assets/Current liabilities
  • Monopoly: When single seller have dominance on market
  • Net profit: Gross Profit – Indirect cost
  • NPV: Net Present Value
  • Net worth: Net assets – Total liabilities
  • NAV: Net Assets Value
  • PLR: Prime lending Rate
  • ROI: Rate on investment

Related: IBPS and SBI sample papers

  • Recession: Economy showing negative growth
  • Working Capital: Current assets / Current liabilities

About the author

Vishal Arora

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