SOME IMPORTANT CONCEPTS FOR MBA ( FINANCE ) 1.Amortization: the proce o! "ritin# o! intan#i$%e a et i term a amortization. &.Branche o!

acco'ntin# a. !inancia% acco'ntin#. $. mana#ement acco'ntin#. c. co t acco'ntin#. (.I.P.O Initia% P'$%ic O!!er ).*e!inition o! acco'ntin#: +the art o! recor,in#- c%a i!.in# an, 'mmarizin# in a i#ni!icant manner an, in term o! mone.- tran action an, e/ent "hich are- in part at %ea t o! a !inancia% character an, interpretin# the re '%t there o!0. 1.Boo2 2eepin#: It i main%. concerne, "ith recor,in# o! !inancia% ,ata re%atin# to the $' ine operation in a i#ni!icant an, or,er%. manner. 3. Concept o! acco'ntin#: A. eparate entit. concept B. #oin# concern concept C. mone. mea 'rement concept *. co t concept E. ,'a% a pect concept F. acco'ntin# perio, concept 4. perio,ic matchin# o! co t an, re/en'e concept 5. rea%ization concept. 6. Con/ention o! acco'ntin# A. con er/ati m B. !'%% ,i c%o 're C. con i tenc. *. materia%it.. 7. Princip%e o! acco'ntin# a. per ona% a8c : ,e$it the recei/er Cre,it the #i/er $. rea% a8c : ,e$it "hat come in Cre,it "hat #oe o't c. nomina% a8c : ,e$it a%% e9pen e an, %o e Cre,it a%% #ain an, income :. Meanin# o! ;o'rna%: ;o'rna% mean chrono%o#ica% recor, o! tran action . 1<. Meanin# o! %e,#er: %e,#er i a et o! acco'nt . It contain a%% acco'nt o! the $' ine nomina%- per ona%. enterpri e "hether rea%-

11. Po tin#: it mean tran !errin# the ,e$it an, cre,it item !rom the ;o'rna% to their re pecti/e acco'nt in the %e,#er. 1&. Tria% $a%ance: tria% $a%ance i a tatement containin# the /ario' %e,#er $a%ance on a partic'%ar ,ate. 1(. Cre,it note: the c' tomer "hen ret'rn the #oo, #et cre,it !or the /a%'e o! the #oo, ret'rne,. A cre,it note i ent to him intimatin# that hi a8c ha $een cre,ite, "ith the /a%'e o! the #oo, ret'rne,. 1). *e$it note: "hen the #oo, are ret'rne, to the 'pp%ier- a ,e$it note i ,e$ite, "ith the amo'nt mentione, in the ,e$it note. ent to him in,icatin# that hi a8c ha $een

11. Contra entr.: "hich acco'ntin# entr. i recor,e, on $oth the ,e$it an, cre,it i,e o! the ca h $oo2 i 2no"n a the contra entr.. 13. Pett. ca h $oo2: pett. ca h i maintaine, $. $' ine po ta#e- carta#e- tationer.- etc. to recor, pett. ca h e9pen e o! the $' ine - 'ch a

16. Promi or. note: an in tr'ment in "ritin# containin# an 'ncon,itiona% 'n,erta2in# i#ne, $. the ma2er- to pa. certain 'm o! mone. on%. to or to the or,er o! a certain per on or to the $arer o! the in tr'ment.

17. Che='e: a $i%% o! e9chan#e ,ra"n on a peci!ie, $an2er an, pa.a$%e on ,eman,. 1:. S. tem o! $oo2 2eepin#: A. in#%e entr. . tem B. ,o'$%e entr. . tem &<. Ban2 reconci%iation tatement: it i a tatement reconci%in# the $a%ance a $a%ance a ho"n $. the Ca h Boo2. O$;ecti/e: to 2no" the ,i!!erence > pa ho"n $. the $an2 pa $oo2 an, the

nece ar. correctin#- a,;' tin# entrie in the $oo2 .

&1. Matchin# concept: matchin# mean re='ire proper matchin# o! e9pen e "ith the re/en'e. &&. Capita% income: the term capita% income mean an income "hich ,oe not #ro" o't o! or pertain to the r'nnin# o! the $' ine proper. &(. Re/en'e income: the income "hich ari e o't o! an, in the co'r e o! the re#'%ar $' ine concern. tran action o! a

&). Capita% e9pen,it're: it mean an e9pen,it're "hich ha $een inc'rre, !or the p'rpo e o! o$tainin# a %on# term a,/anta#e !or the $' ine . &1. Re/en'e e9pen,it're: an e9pen,it're that inc'rre, in the co'r e o! re#'%ar $' ine tran action o! a concern.

&3. *i!!ere, re/en'e e9pen,it're: an e9pen,it're "hich i inc'rre, ,'rin# an acco'ntin# perio, $'t i app%ica$%e !'rther perio, a% o. E#: hea/. a,/erti ement. &6. Ba, ,e$t : $a, ,e$t ,enote the amo'nt %o t !rom ,e$tor to "hom the #oo, "ere o%, on cre,it. &7. *epreciation: ,epreciation ,enote #ra,'a%%. an, permanent ,ecrea e in the /a%'e o! a et ,'e to "ear an, teartechno%o#. chan#e - %ap o! time an, acci,ent. &:. Fictitio' a et : The e are a et not repre ente, $. tan#i$%e po e ion or propert.. E9amp%e o! pre%iminar. e9pen e - ,i co'nt on i 'e o! hare - ,e$it $a%ance in the pro!it an, %o acco'nt "hen ho"n on the a et i,e in the $a%ance heet. (<.Intan#i$%e A et : Intan#i$%e a et mean the a et "hich i not ha/in# the ph. ica% appearance > it ha/e the rea% /a%'e- it ho"n on the a et i,e o! the $a%ance heet. (1. Accr'e, Income : Accr'e, income mean income "hich ha $een earne, $. the $' ine acco'ntin#8c'rrent .ear $'t "hich ha not .et $een ,'e an,- there!ore ha not $een recei/e,. ,'rin# the

(&. O't tan,in# Income : O't tan,in# Income mean income "hich ha $ecome ,'e ,'rin# the acco'ntin# .ear $'t "hich ha not o !ar $een recei/e, $. the !irm. ((. S' pen e acco'nt: the ' pen e acco'nt i an acco'nt to "hich the ,i!!erence in the tria% $a%ance ha $een p't temporari%.. (). *ep%etion: it imp%ie remo/a% o! an a/ai%a$%e $'t not rep%acea$%e o'rce- S'ch a e9tractin# coa% !rom a coa% mine. (1. A%% a,mini tration e9pen e are ho"n in pro!it > %o acco'nt.(,e$it $a%ance)

(3. *i%api,ation : the term ,i%api,ation to ,ama#e ,one to a $'i%,in# or other propert. ,'rin# tenanc.. (6. Capita% emp%o.e,: The term capita% emp%o.e, mean 'm o! tota% %on# term !'n, emp%o.e, in the $' ine . i.e. a et ? !ictitio' a et )

( hare capita%? re er/e > 'rp%' ?%on# term %oan @ (non $' ine

(7. E='it. hare : Tho e hare "hich are not ha/in# pre!. ri#ht are ca%%e, e='it. hare > rea% o"ner o! the !irm a "e%%a po e /otin# ri#ht.

(:. Pre!. hare : Tho e hare "hich are carr.in# the pre!.ri#ht i ca%%e, pre!. hare 1Pre!.ri#ht in re pect o! !i9e, ,i/i,en,. &Pre!.ri#ht to repa.ment o! capita% in the e/en o! compan. "in,in# 'p. )<. Ae/era#e: It i a !orce app%ie, at a partic'%ar point to #et the ,e ire, re '%t. )1.Operatin# %e/era#e:The operatin# %e/era#e ta2e p%ace "hen a chan#e in re/en'e #reater chan#e in EBIT. )&. Financia% %e/era#e : It i nothin# $'t a proce ret'rn on e='it. o! ' in# ,e$t capita% to increa e the rate o!

)(. Com$ine %e/era#e: It i ' e, to mea 're o! the tota% ri 2 o! the !irm B operatin# ri 2 ? !inancia% ri 2. )). Coint /ent're: A ;oint /ent're i an a ociation o! t"o or more the per on "ho com$ine, !or the e9ec'tion o! a peci!ic tran action > ,i/i,e the pro!it or %o their o! an a#ree, ratio. )1. Partner hip: partner hip i the re%ation $8" the per on "ho ha/e a#ree, to hare the pro!it o! $' ine carrie, on $. a%% or an. o! them actin# !or a%%. )3. Factorin#: It i an arran#ement 'n,er "hich a !irm (ca%%e, $orro"er) recei/e a,/ance a#ain t it recei/a$%e - !rom a !inancia% in tit'tion (ca%%e, !actor) )6. Capita% re er/e: The re er/e "hich tran !erre, !rom the capita% #ain i ca%%e, capita% re er/e. )7. 4enera% re er/e: the re er/e "hich i tran !erre, !rom norma% pro!it o! the !irm i ca%%e, #enera% re er/e. ):. Free Ca h: The ca h not !or an. peci!ic p'rpo e !ree !rom an. enc'm$rance %i2e 'rp%' ca h. 1<. Minorit. Intere t: minorit. intere t re!er to the e='it. o! the minorit. hareho%,er in a S'$ i,iar. compan.. 11. Capita% receipt : capita% receipt ma. $e ,e!ine, a +nonDrec'rrin# receipt !rom the o"ner o! the $' ine o! the mone. cratin# a %ia$i%it. to either o! them. or %en,er

1&. Re/en'e receipt : Re/en'e receipt ma. ,e!ine, a +A rec'rrin# receipt a#ain t a%e o! #oo, in the norma% co'r e o! $' ine an, "hich #enera%%. the re '%t o! the tra,in# acti/itie 0. COMPANY TERMINOLOGIES 1(. Meanin# o! Compan.: A compan. i an a ociation o! man. per on "ho contri$'te mone. or mone.E "orth to common toc2 an, emp%o. it !or a common p'rpo e. The common toc2 o contri$'te, i ,enote, in mone. an, i the capita% o! the compan.. 1). T.pe o! a compan.: 1.Stat'tor. companie &.#o/ernment compan. (.!orei#n compan. ).Re#i tere, companie : a. Companie %imite, $. hare $. Companie %imite, $. #'arantee c. Fn%imite, companie *. pri/ate compan. E. p'$%ic compan.

11. Pri/ate compan.: A pri/ate co. i "hich $. it AOA: 1Re trict the ri#ht o! the mem$er to tran !er o! hare &Aimit the no. o! mem$er 1<. (Prohi$it an. In/itation to the p'$%ic to '$ cri$e !or it

hare or ,e$ent're .

13. P'$%ic compan.: A compan.- the artic%e o! a ociation o! "hich ,oe not contain the re='i ite re triction to ma2e it a pri/ate %imite, compan.- i ca%%e, a p'$%ic compan... 16. Characteri tic o! a compan.: 1Go%'ntar. a ociation &Separate %e#a% entit. (Free tran !er o! hare )Aimite, %ia$i%it. 1Common ea% 3Perpet'a% e9i tence. 17. Formation o! compan.: 1Promotion &Incorporation (Commencement o! $' ine 1:. E='it. hare capita%: The tota% 'm o! e='it. hare i ca%%e, e='it. hare capita%. 3<. A'thorize, hare capita%: it i the ma9im'm amo'nt o! the hare capita% "hich a compan. can rai e !or the time $ein#. 31. I 'e, capita%: It i that part o! the a'thorize, capita% "hich ha $een a%%otte, to the p'$%ic !or '$ cription . 3&. S'$ cri$e, capita%: it i the part o! the i 'e, capita% "hich ha $een a%%otte, to the p'$%ic 3(. Ca%%e, 'p capita%: It ha $een portion o! the '$ cri$e, capita% "hich ha $een ca%%e, 'p $. the compan.. 3). Pai, 'p capita%: It i the portion o! the ca%%e, 'p capita% a#ain t "hich pa.ment ha $een recei/e,. 31. *e$ent're : *e$ent're i a certi!icate i 'e, $. a compan. 'n,er it 33. Ca h pro!it: ca h pro!it i the pro!it it i occ'rre, !rom the ca h a%e . 36. *eeme, p'$%ic At,. Compan.: A pri/ate compan. i a '$ i,iar. compan. to p'$%ic compan. it ati !ie the !o%%o"in# term 8con,ition Sec ((1)(: 1.ha/in# minim'm hare capita% 1 %a2h &.acceptin# in/e tment !rom the p'$%ic (.no re triction o! the tran !era$%e o! hare ).No re triction o! no. o! mem$er . 1.acceptin# ,epo it !rom the in/e tor 37. Secret re er/e : ecret re er/e are re er/e the e9i tence o! "hich ,oe not appear on the !ace o! $a%ance heet. In 'ch a it'ation- net a et po ition o! the $' ine i tron#er than that ,i c%o e, $. the $a%ance heet. The e re er/e are crate, $.: 1.E9ce i/e ,epreciation o! an a et- e9ce i/e o/erD/a%'ation o! a %ia$i%it.. &.Comp%ete e%imination o! an a et- or 'n,er /a%'ation o! an a et. 3:. Pro/i ion: pro/i ion ' 'a%%. mean an. amo'nt "ritten o!! or retaine, $. "a. o! pro/i,in# ,epreciation- rene"a% or ,imin'tion in the /a%'e o! a et or retaine, $. "a. o! pro/i,in# !or an. 2no"n %ia$i%it. o! "hich the amo'nt can not $e ,etermine, "ith '$ tantia% acc'rac.. 6<. Re er/e: The pro/i ion in e9ce o! the amo'nt con i,ere, nece ar. !or the p'rpo e it "a ori#ina%%. ma,e i a% o con i,ere, a re er/e 1Pro/i ion i char#e a#ain t pro!it "hi%e re er/e i an appropriation o! pro!it &Creation o! re er/e increa e proprietorE !'n, "hi%e creation o! pro/i ion ,ecrea e hi !'n, in the $' ine . ea% ac2no"%e,#in# a ,e$t ,'e $. it to it ho%,er.

61. Re er/e !'n,: The e !'n, are maintaine, !or !'t're in/e tment8re='irement etc.6&. Fn,i c%o e, re er/e : Sometime a re er/e i create, $'t it i,entit. i mer#e, "ith ome other a8c or #ro'p o! acco'nt o that the e9i tence o! the re er/e i not 2no"n 'ch re er/e i ca%%e, an 'n,i c%o e, re er/e. Financial Management terms,

6(. Financia% mana#ement: It ,ea% "ith proc'rement o! !'n, an, their e!!ecti/e 'ti%ization in $' ine . 6). O$;ecti/e o! !inancia% mana#ement: Financia% mana#ement ha/in# t"o o$;ecti/e that I : 1. Pro!it ma9imization: the !inance mana#er ha to ma2e hi ,eci ion in a manner o that the pro!it o! the concern are ma9imize,. &. Hea%th ma9imization: "ea%th ma9imization mean the o$;ecti/e o! a !irm ho'%, $e to ma9imize it /a%'e or "ea%th- or /a%'e o! a !irm i repre ente, $. the mar2et price o! it common toc2. 61. F'nction o! !inancia% mana#er: 1In/e tment ,eci ion &*i/i,en, ,eci ion (Finance ,eci ion )Ca h mana#ement ,eci ion 1Per!ormance e/a%'ation 3Mar2et impact ana%. i 63. Time /a%'e o! mone.: It mean that "orth o! a r'pee recei/e, to,a. i ,i!!erent !rom the "orth o! a r'pee to $e recei/e, in !'t're. 66. Capita% tr'ct're: it re!er to the mi9 o! o'rce !rom "here the %on#Dterm !'n, re='ire, in a $' ine rai e,I in other "or, - it re!er to the proportion o! ,e$t- pre!erence capita% an, e='it. capita%. ma. $e

67. Optim'm capita% tr'ct're: capita% tr'ct're i optim'm "hen the !irm ha a com$ination o! e='it. an, ,e$t o that the "ea%th o! the !irm i ma9im'm. 6:. HACC: It ,enote "ei#hte, a/era#e co t o! capita%. It i ,e!ine, a the o/era%% co t o! capita% comp'te, $. re!erence to the proportion o! each component o! capita% a "ei#ht . 7<. Financia% $rea2 e/en point: It ,enote the %e/e% at "hich a !irmE EBIT i ;' t '!!icient to co/er intere t an, pre!erence ,i/i,en,. 71. Capita% $',#etin#: It in/o%/e the proce o! ,eci ion ma2in# "ith re#ar, to in/e tment in !i9e, a et . Or ,eci ion ma2in# "ith re#ar, to in/e tment o! mone. in %on# term pro;ect . 7&. Pa. $ac2 perio,: Pa.$ac2 perio, repre ent the time perio, re='ire, !or comp%ete reco/er. o! the initia% in/e tment in the pro;ect. 7(. ARR: Acco'ntin# or a/era#e rate o! ret'rn mean the a/era#e ann'a% .ie%, on the pro;ect. 7). NPG: the net pre ent /a%'e o! an in/e tment propo a% i ,e!ine, a the 'm o! the pre ent /a%'e o! a%% !'t're ca h in !%o" %e the 'm o! the pre ent /a%'e o! a%% ca h o't !%o" a ociate, "ith the propo a%. 71. Pro!ita$i%it. in,e9: "here ,i!!erent in/e tment propo a% each in/o%/in# ,i!!erent initia% in/e tment an, ca h in!%o" are to $e compare,. 73. IRR: interna% rate o! ret'rn i the rate at "hich the 'm tota% o! ,i co'nte, ca h in!%o" e='a% the ,i co'nte, ca h o't !%o". 76. Trea 'r. mana#ement: it mean it i ,e!ine, a the e!!icient mana#ement o! %i='i,it. an, !inancia% ri 2 in $' ine . 77. Concentration $an2in#: it mean i,enti!. %ocation or p%ace "here c' tomer are p%ace, an, open a %oca% $an2 a8c in

each o! the e %ocation an, open %oca% co%%ection centre. 7:. Mar2eta$%e ec'ritie : 'rp%' ca h can $e in/e te, in hort term in tr'ment in or,er to earn intere t. :<. A#ein# che,'%e: in a a#ein# che,'%e the recei/a$%e are c%a i!ie, accor,in# to their a#e. :1. Ma9im'm permi i$%e $an2 !inance (MPBF): it i the ma9im'm amo'nt that $an2 can %en, a $orro"er to"ar, hi "or2in# capita% re='irement . :&. Commercia% paper: It i a hort term promi or. note i 'e, $. a compan.- ne#otia$%e $. en,or ,i co'nt on !ace /a%'e a ma. $e ,etermine, $. the i 'in# compan..
ement an, ,e%i/er.- i 'e, at a

:(. Bri,#e !inance: It re!er to the %oan ta2en $. the compan. norma%%. !rom a commercia% $an2 !or a hort perio,pen,in# ,i $'r ement o! %oan anctione, $. the !inancia% in tit'tion . :). Gent're capita%: It re!er to the !inancin# o! hi#h ri 2 /ent're promote, $. ne" ='a%i!ie, entreprene'r "ho re='ire !'n, to #i/e hape to their i,ea . :1. *e$t ec'ritization: It i a mo,e o! !inancin#- "here in ec'ritie are i 'e, on the $a i o! a pac2a#e o! a et (ca%%e, a et poo%). :3. Aea e !inancin#: Aea in# i a contract "here one part. (o"ner) p'rcha e a et an, permit it /ie" $. another part. (%e ee) o/er a peci!ie, perio, :6. Tra,e Cre,it: It repre ent cre,it #rante, $. 'pp%ier o! #oo, - in the norma% co'r e o! $' ine . :7. O/er ,ra!t: Fn,er thi !aci%it. a !i9e, %imit i #rante, "ithin "hich the $orro"er a%%o"e, to o/er,ra" !rom hi acco'nt. ::. Ca h cre,it: It i an arran#ement 'n,er "hich a c' tomer i a%%o"e, an a,/ance 'p to certain %imit a#ain t cre,it #rante, $. $an2. 1<<. C%ean o/er,ra!t: It re!er to an a,/ance $. "a. o! o/er,ra!t !aci%it.- $'t not $ac2 $. an. tan#i$%e ec'rit.. 1<1. Share capita%: The 'm tota% o! the nomina% /a%'e o! the hare o! a compan. i ca%%e, hare capita%. 1<&. F'n, !%o" tatement: It i the tatement ,ea% "ith the !inancia% re o'rce !or r'nnin# $' ine e9p%ain ho" the !'n, o$taine, an, ho" the. ' e,. 1<(. So'rce o! !'n, : There are t"o o'rce o! !'n, Interna% o'rce an, e9terna% o'rce . Interna% o'rce: F'n, !rom operation i the on%. interna% o'rce o! !'n, an, ome important point a,, to it the. ,o not re '%t in the o't!%o" o! !'n, (a)*epreciation on !i9e, a et ($) Pre%iminar. e9pen e or #oo,"i%% "ritten o!!- Ao on a%e o! !i9e, a et *e,'ct the !o%%o"in# item a the. ,o not increa e the !'n, : Pro!it on a%e o! !i9e, a et - pro!it on re/a%'ation o! !i9e, a et E9terna% o'rce : (a) F'n, !rom %on# term %oan ($) Sa%e o! !i9e, a et (c) F'n, !rom increa e in hare capita% 1<). App%ication o! !'n, : (a) P'rcha e o! !i9e, a et ($) Pa.ment o! ,i/i,en, (c)Pa.ment o! ta9 %ia$i%it. (,) Pa.ment o! !i9e, %ia$i%it. 1<1. IC* (Inter corporate ,epo it ): Companie can $orro" !'n, !or a hort perio,. For e9amp%e 3 month or %e !rom another compan. "hich ha/e 'rp%' %i='i,it.. S'ch ,epo it ma,e $. one compan. in another compan. are ca%%e, IC*. 1<3. Certi!icate o! ,epo it : The C* i a ,oc'ment o! tit%e imi%ar to a !i9e, ,epo it receipt i 'e, $. $an2 there i no pre cri$e, intere t rate on 'ch C* it i $a e, on the pre/ai%in# mar2et con,ition . 1<6. P'$%ic ,epo it : It i /er. important o'rce o! hort term an, me,i'm term !inance. The compan. can accept P* acti/itie . It

!rom mem$er o! the p'$%ic an, hareho%,er . It ha the mat'rit. perio, o! 3 month to ( .ear . 1<7.E'ro i 'e : The e'ro i 'e mean that the i 'e i %i te, on a E'ropean toc2 E9chan#e. The '$ cription can come !rom an. part o! the "or%, e9cept In,ia. 1<:.4*R (4%o$a% ,epo itor. receipt ): A ,epo itor. receipt i $a ica%%. a ne#otia$%e certi!icate - ,ominate, in ' ,o%%ar that repre ent a nonDFS compan. p'$%ic%. tra,e, in %oca% c'rrenc. e='it. hare . 11<. A*R (American ,epo itor. receipt ): *epo itor. receipt i 'e, $. a compan. in the FSA are 2no"n a A*R . S'ch receipt are to $e i 'e, in accor,ance "ith the pro/i ion tip'%ate, $. the ec'ritie E9chan#e commi ion (SEC) o! FSA %i2e SEBI in In,ia. 111.Commercia% $an2 : Commercia% $an2 e9ten, !orei#n c'rrenc. %oan !or internationa% operation - ;' t %i2e r'pee %oan . The $an2 a% o pro/i,e, o/er,ra!t. 11&.*e/e%opment $an2 : It o!!er %on#Dterm an, me,i'm term %oan inc%',in# !orei#n c'rrenc. %oan 11(.Internationa% a#encie : Internationa% a#encie %i2e the IFC-IBR*-A*B-IMF etc. pro/i,e in,irect a i tance !or o$tainin# !orei#n c'rrenc.. 11). See, capita% a i tance: The ee, capita% a i tance cheme i ,e ire, $. the I*BI !or pro!e iona%%. or technica%%. ='a%i!ie, entreprene'r an, per on po e in# re%e/ant e9perience an, 2i%% an, entreprene'r trait . 111. Fn ec're, %<an : It con tit'te a i#ni!icant part o! %on#Dterm !inance a/ai%a$%e to an enterpri e. 113. Ca h !%o" tatement: It i a tatement ,epictin# chan#e in ca h po ition !rom one perio, to another. 116.So'rce o! ca h: Interna% o'rce D(a)*epreciation ($)Amortization (c)Ao on a%e o! !i9e, a et (,)4ain !rom a%e o! !i9e, a et (e) Creation o! re er/e E9terna% o'rce D(a)I 'e o! ne" hare ($)Rai in# %on# term %oan (c)ShortDterm $orro"in# (,)Sa%e o! !i9e, a et - in/e tment 117. App%ication o! ca h: (a) P'rcha e o! !i9e, a et ($) Pa.ment o! %on#Dterm %oan (c) *ecrea e in ,e!erre, pa.ment %ia$i%itie (,) Pa.ment o! ta9- ,i/i,en, (e) *ecrea e in 'n ec're, %oan an, ,epo it 11:. B',#et: It i a ,etai%e, p%an o! operation !or ome peci!ic !'t're perio,. It i an e timate prepare, in a,/ance o! the perio, to "hich it app%ie . 1&<. B',#etar. contro%: It i the . tem o! mana#ement contro% an, acco'ntin# in "hich a%% operation are !oreca te, an, o !or a po i$%e p%anne, ahea,- an, the act'a% re '%t compare, "ith the !oreca te, an, p%anne, one . 1&1. Ca h $',#et: It i a 'mmar. tatement o! !irmE e9pecte, ca h in!%o" an, o't!%o" o/er a peci!ie, time perio,. 1&&. Ma ter $',#et: A 'mmar. o! $',#et che,'%e in cap '%e !orm ma,e !or the p'rpo e o! pre entin# in one report the hi#h%i#ht o! the $',#et !oreca t. 1&(. Fi9e, $',#et: It i a $',#et "hich i ,e i#ne, to remain 'nchan#e, irre pecti/e o! the %e/e% o! acti/it. act'a%%. attaine,.1&). Jero $a e $',#etin#: It i a mana#ement too% "hich pro/i,e a . tematic metho, !or e/a%'atin# a%% operation an, pro#ramme - c'rrent o! ne" a%%o" !or $',#et re,'ction an, e9pan ion in a rationa% manner an, a%%o" rea%%ocation o! o'rce !rom %o" to hi#h priorit. pro#ram . 1&1. 4oo,"i%%: The pre ent /a%'e o! !irmE anticipate, e9ce earnin# . Co t acco'ntin# 1&3. Re pon i$i%itie o! acco'ntin#: It i a . tem o! contro% $. ,e%e#atin# an, %ocatin# the re pon i$i%itie !or co t . 1&6. Pro!it centre: A centre "ho e per!ormance i mea 're, in term o! $oth the e9pen e inc'r an, re/en'e it earn . 1&7. Co t centre: A %ocation- per on or item o! e='ipment !or "hich co t ma. $e a certaine, an, ' e, !or the p'rpo e o! co t contro%.

1&:. Co t: The amo'nt o! e9pen,it're inc'rre, on to a #i/en thin#. 1(<. Co t acco'ntin#: It i th' concerne, "ith recor,in#- c%a i!.in#- an, 'mmarizin# co t !or ,etermination o! co t o! pro,'ct or er/ice p%annin#- contro%%in# an, re,'cin# 'ch co t an, !'rni hin# o! in!ormation mana#ement !or ,eci ion ma2in#. 1(1. E%ement o! co t: (A) Materia% (B) Aa$o'r (C) E9pen e (*) O/erhea, 1(&. Component o! tota% co t : (A) Prime co t (B) Factor. co t (C)Tota% co t o! pro,'ction (*) Tota% c< t 1((. Prime co t: It con i t o! ,irect materia% ,irect %a$o'r an, ,irect e9pen e . It i a% o 2no"n a $a ic or !ir t or !%at co t. 1(). Factor. co t: It compri e prime co t- in a,,ition !actor. o/erhea, "hich inc%',e co t o! in,irect materia% in,irect %a$o'r an, in,irect e9pen e inc'rre, in !actor.. Thi co t i a% o 2no"n a "or2 co t or pro,'ction co t or man'!act'rin# co t. 1(1. Co t o! pro,'ction: In o!!ice an, a,mini tration o/erhea, are a,,e, to !actor. co t- o!!ice co t i arri/e, at. 1(3. Tota% co t: Se%%in# an, ,i tri$'tion o/erhea, are a,,e, to tota% co t o! pro,'ction to #et the tota% co t or co t o! a%e . 1(6. Co t 'nit: A 'nit o! ='antit. o! a pro,'ct- er/ice or time in re%ation to "hich co t ma. $e a certaine, or e9pre e,. 1(7. Metho, o! co tin#: (A)Co$ co tin# (B)Contract co tin# (C)Proce co tin# (F)Fnit co tin# (4)Batch co tin#. co tin# (*)Operation co tin# (E)Operatin#

1(:. Techni='e o! co tin#: (a) mar#ina% co tin# ($) ,irect co tin# (c)a$ orption co tin# (,) 'ni!orm co tin#. 1)<. Stan,ar, co tin#: tan,ar, co tin# i a . tem 'n,er "hich the co t o! the pro,'ct i ,etermine, in a,/ance on certain pre,etermine, tan,ar, . 1)1. Mar#ina% co tin#: it i a techni='e o! co tin# in "hich a%%ocation o! e9pen,it're to pro,'ction i re tricte, to tho e e9pen e "hich ari e a a re '%t o! pro,'ction- i.e.- materia% - %a$o'r- ,irect e9pen e an, /aria$%e o/erhea, . Stoc2 re%ate, term 1)&. *eri/ati/e: ,eri/ati/e i pro,'ct "ho e /a%'e i ,eri/e, !rom the /a%'e o! one or more $a ic /aria$%e o! 'n,er%.in# a et. 1)(. For"ar, : a !or"ar, contract i c' tomize, contract $et"een t"o entitie "ere ett%ement ta2e p%ace on a peci!ic ,ate in the !'t're at to,a.E pre a#ree, price. 1)). F't're : a !'t're contract i an a#reement $et"een t"o partie to $'. or e%% an a et at a certain time in the !'t're at a certain price. F't're contract are tan,ar,ize, e9chan#e tra,e, contract . 1)1. Option : an option #i/e the ho%,er o! the option the ri#ht to ,o ome thin#. The option ho%,er option ma. e9erci e or not. 1)3. Ca%% option: a ca%% option #i/e the ho%,er the ri#ht $'t not the o$%i#ation to $'. an a et $. a certain ,ate !or a certain price. 1)6. P't option: a p't option #i/e the ho%,er the ri#ht $'t not o$%i#ation to e%% an a et $. a certain ,ate !or a certain price. 1)7. Option price: option price i the price "hich the option $'.er pa. to the option e%%er. It i a% o re!erre, to a the option premi'm. 1):. E9piration ,ate: the ,ate "hich i peci!ie, in the option contract i ca%%e, e9piration ,ate.

11<. E'ropean option: it i the option at e9erci e, on%. on e9piration ,ate it e%!. 111. Ba i : $a i mean !'t're price min' pot price.

11&. Co t o! carr.: The re%ation $et"een !'t're price an, pot price can $e 'mmarize, in term o! "hat i 2no"n a

co t o! carr.. 11(. Initia% mar#in: The amo'nt that m' t $e ,epo ite, in the mar#in a8c at the time o! !ir t entere, into !'t're contract i 2no"n a initia% mar#in. 11). Maintenance mar#in: Thi i ome "hat %o"er than initia% mar#in.

111. Mar2 to mar2et: In !'t're mar2et- at the en, o! the each tra,in# ,a.- the mar#in a8c i a,;' te, to re!%ect the in/e tor E #ain or %o ,epen,in# 'pon the !'t're e%%in# price. Thi i ca%%e, mar2 to mar2et. 113. Ba 2et : Ba 2et option are option on port!o%io o! 'n,er%.in# a et. 116. S"ap : S"ap are pri/ate a#reement $et"een t"o partie to e9chan#e ca h !%o" in the !'t're accor,in# to a pre a#ree, !orm'%a. 117. Impact co t: It i co t it i mea 're o! %i='i,it. o! the mar2et. It re!%ect the co t !ace, "hen act'a%%. tra,in# in in,e9. 11:. 5e,#in#: he,#in# mean minimize the ri 2. 13<. Capita% mar2et: capita% mar2et i the mar2et it ,ea% "ith the %on# term in/e tment !'n, . It con i t o! t"o mar2et 1.primar. mar2et &. econ,ar. mar2et. 131. Primar. mar2et: Tho e companie "hich are i 'in# ne" hare in thi mar2et. It i a% o ca%%e, ne" i 'e mar2et. 13&. Secon,ar. mar2et: Secon,ar. mar2et i the mar2et "here hare $'.in# an, e%%in#. In In,ia econ,ar. mar2et i ca%%e, toc2 e9chan#e. 13(. Ar$itra#e: It mean p'rcha e an, a%e o! ec'ritie in ,i!!erent mar2et in or,er to pro!it !rom price ,i crepancie . In other "or, ar$itra#e i a "a. o! re,'cin# ri 2 o! %o ca' e, $. price !%'ct'ation o! ec'ritie he%, in a port!o%io. 13). Meanin# o! ratio: Ratio are re%ation hip e9pre e, in mathematica% term $et"een !i#'re "hich are connecte, "ith each other in ame manner. 131. Acti/it. ratio: it i a mea 're o! the %e/e% o! acti/it. attaine, o/er a perio,. 133. M't'a% !'n,: a m't'a% !'n, i a poo% o! mone.- co%%ecte, !rom in/e tor - an, i in/e te, accor,in# to certain in/e tment o$;ecti/e . 136. Characteri tic o! m't'a% !'n,: 1O"ner hip o! the MF i in the han, o! the o! the in/e tor &MF mana#e, $. in/e tment pro!e iona% (The /a%'e o! port!o%io i 'p,ate, e/er. ,a. 137. A,/anta#e o! MF to in/e tor : 1Port!o%io ,i/er i!ication &Pro!e iona% mana#ement (Re,'ction in ri 2 )Re,'ction o! tran action ca t 1Ai='i,it. 3Con/enience an, !%e9i$i%it. 13:. Net a et /a%'e: the /a%'e o! one 'nit o! in/e tment i ca%%e, a the Net A et Ga%'e 16<. OpenDen,e, !'n,: open en,e, !'n, mean in/e tor can $'. an, e%% 'nit o! !'n,- at NAG re%ate, price at an. time- ,irect%. !rom the !'n, thi i ca%%e, open en,e, !'n,. For e9: 1:7 or &<: or &1< 'nit 161. C%o e en,e, !'n, : c%o e en,e, !'n, mean it i open !or a%e to in/e tor !or a peci!ic perio,- a!ter "hich !'rther

a%e are c%o e,. An. !'rther tran action !or $'.in# the 'nit or rep'rcha in# them- happen- in the econ,ar. mar2et . 16&. *i/i,en, option: In/e tor- "ho choo e a ,i/i,en, on their in/e tment - "i%% recei/e ,i/i,en, !rom the MF- a "hen 'ch ,i/i,en, are ,ec%are,. 16(. 4ro"th option: in/e tor "ho ,o not re='ire perio,ic income ,i tri$'tion can $e choo e the #ro"th option. 16). E='it. !'n, : e='it. !'n, are tho e that in/e t preD,ominant%. in e='it. hare o! compan.. 161. T.pe o! e='it. !'n,: 1Simp%e e='it. !'n, &Primar. mar2et !'n, (Sectora% !'n, )In,e9 !'n, 163. Sectora% !'n, : The e !'n, are choo en to in/e t in one or more cho en ector o! the e='it. mar2et . 166. In,e9 !'n, : F'n, mana#er ta2e a /ie" on companie that are e9pecte, to per!orm "e%%- an, in/e t in the e companie 167. *e$t !'n, : *e$t !'n, are tho e that are preD,ominant%. in/e t in ,e$t ec'ritie . 16:. Ai='i, !'n,: *e$t !'n, in/e t on%. in in tr'ment "ith mat'ritie %e than one .ear.

17<. 4i%t !'n, : 4i%t !'n, are in/e te, on%. in an ec'ritie - that are i 'e, $. the 4OGT. an, there!ore ,oe not carr. an. cre,it ri 2. 171. Ba%ance, !'n, : F'n, that in/e t $oth in ,e$t an, e='it. mar2et are ca%%e, $a%ance, !'n, . 17&. Spon or: pon or i the promoter o! the MF an, appoint tr' tee - c' to,ian an, the AMC "ith prior appro/a% o! SEBI. 17(. Tr' tee: tr' tee i re pon i$%e to the in/e tor in the MF an, appoint the AMC !or mana#in# the in/e tment port!o%io. 17). AMC: the AMC ,e cri$e A et Mana#ement Compan.- it i the $' ine a!!air o! the MF. !ace o! the MF- a it mana#e a%% the

171. R > T A#ent : R>T a#ent are re pon i$%e !or the in/e tor er/icin# !'nction - a the. maintain the recor, o! in/e tor in MF. 173. C' to,ian : C' to,ian are re pon i$%e !or the ec'ritie he%, in the m't'a% !'n,E port!o%io. 176. cheme ta2e o/er: I! an e9i tin# MF cheme i ta2en o/er $. the another AMC- it i ca%%e, a cheme ta2e o/er.

17:. Meanin# o! %oa,: %oa, i the !actor that i app%ie, to the NAG o! a cheme to arri/e at the price. 1:<. Mar2et capita%ization: mar2et capita%ization mean n'm$er o! hare i 'e, m'%tip%ie, "ith mar2et price per hare. 1:1. Price earnin# ratio: The ratio $et"een the hare price an, the po t ta9 earnin# o! compan. i ca%%e, a price earnin# ratio. 1:&. *i/i,en, .ie%,: The ,i/i,en, pai, o't $. the compan.- i ' 'a%%. a percenta#e o! the !ace /a%'e o! a hare. 1:(. mar2et ri 2 : it re!er to the ri 2 "hich the in/e tor i e9po e, to a a re '%t o! a,/er e mo/ement in the intere t rate . It a% o re!erre, to a the intere t rate ri 2. 1:). ReDin/e tment ri 2 : it the ri 2 "hich an in/e tor ha to !ace a a re '%t o! a !a%% in the intere t rate at the time o! rein/e tin# the intere t income !%o" !rom the !i9e, income ec'rit..

1:1. ca%% ri 2 : It i a ociate, "ith $on, ha/e an em$e,,e, ca%% option in them. Thi option hi/e the i 'er the ri#ht to ca%% $ac2 the $on, prior to mat'rit.. 1:3. Cre,it ri 2: Cre,it ri 2 re!er to the pro$a$i%it. that a $orro"er co'%, ,e!a'%t on a $an, %oan commitment to repa. ,e$t or

1:6. In!%ation ri 2: It re!%ect the chan#e in the p'rcha in# po"er o! the ca h !%o" re '%tin# !rom the !i9e, income ec'rit.. 1:7. Ai='i, ri 2: It i a% o ca%%e, mar2et ri 2- it re!er to the ea e "ith "hich $on, co'%, $e tra,e, in the mar2et. 1::. *ra"in# : *ra"in# ,enote the mone. "ith,ra"n $. the proprietor !rom the $' ine &<<. Metho, o! ,epreciation: 1.Fni!orm char#e metho, : a. Fi9e, in ta%%ment metho, $. *ep%etion metho, c. Machine ho'r rate metho,. &. *ec%inin# char#e metho, : a. *imini hin# $a%ance metho, $. S'm o! .ear ,i#it metho, c. *o'$%e ,ec%inin# metho, (. Other metho, : a. 4ro'p ,epreciation metho, $. In/entor. . tem o! ,epreciation c. Ann'it. metho, ,. *epreciation !'n, metho, e. In 'rance po%ic. metho,. &<1. Accr'e, Income : Accr'e, Income mean income "hich ha $een earne, $. the $' ine $'t "hich ha not .et $ecome ,'e an,- there!ore- ha not $een recei/e,. &<&. 4ro pro!it ratio : it in,icate the e!!icienc. o! the pro,'ction8tra,in# operation . pro!it K1<< Net a%e !or hi per ona% ' e.

,'rin# the acco'ntin# .ear

Form'%a: 4ro

&<(. Net pro!it ratio: it in,icate net mar#in on a%e Form'%a : Net pro!it Net a%e K 1<<

&<). Ret'rn on hare ho%,er !'n, : It in,icate mea 're earnin# po"er o! e='it. capita%. Form'%a : pro!it a/ai%a$%e !or E='it. hareho%,er A/era#e E='it. Shareho%,er F'n, K 1<<

&<1. Earnin# per E='it. hare (EPS) : It ho" the amo'nt o! earnin# attri$'ta$%e to each e='it. hare. Form'%a : pro!it a/ai%a$%e !or E='it. hareho%,er N'm$er o! E='it. hare

&<3. *i/i,en, .ie%, ratio: It ho" the rate o! ret'rn to hareho%,er in the !orm o! ,i/i,en, $a e, in the mar2et price o! the hare Form'%a : *i/i,en, per hare K 1<< Mar2et price per hare

&<6. Price earnin# ratio : It a mea 're !or ,eterminin# the /a%'e o! a hare. Ma. a% o $e ' e, to mea 're the rate o! ret'rn e9pecte, $. in/e tor .

Form'%a : Mar2et price o! hare (MPS) K 1<< Earnin# per hare (EPS) &<7. C'rrent ratio : it mea 're hortDterm ,e$t pa.in# a$i%it..

Form'%a : C'rrent A et C'rrent Aia$i%itie &<:. *e$tDE='it. Ratio : it in,icate the percenta#e o! !'n, $ein# !inance, thro'#h $orro"in# I a mea 're o! the e9tent o! tra,in# on e='it.. Form'%a : Tota% Aon#Dterm *e$t Shareho%,er !'n, &1<. Fi9e, A et ratio : Thi ratio e9p%ain "hether the !irm ha rai e, a,ep'ate %on#Dterm !'n, to meet it !i9e, a et re='irement . Form'%a Fi9e, A et Aon#Dterm F'n,

&11 . L'ic2 Ratio : The ratio terme, a M %i='i,it. ratioE. The ratio i a certaine, . comparin# the %i='i, a et to c'rrent %ia$i%itie . Form'%a : Ai='i, A et C'rrent Aia$i%itie

&1&. Stoc2 t'rno/er Ratio : the ratio in,icate "hether in/e tment in in/entor. in e!!icient%. ' e, or not. It- there!ore e9p%ain "hether in/e tment in in/entor. "ithin proper %imit or not. Form'%a : co t o! #oo, o%, A/era#e toc2 &1(. *e$tor T'rno/er Ratio : the ratio the $etter it i - ince it "o'%, in,icate that ,e$t are $ein# co%%ecte, more prompt%.. The ration he%p in ca h $',#etin# ince the !%o" o! ca h !rom c' tomer can $e "or2e, o't on the $a i o! a%e . Form'%a : Cre,it a%e A/era#e Acco'nt Recei/a$%e

&1).Cre,itor T'rno/er Ratio : it in,icate the pee, "ith "hich the pa.ment !or cre,it p'rcha e are ma,e to the cre,itor . Form'%a : Cre,it P'rcha e A/era#e Acco'nt Pa.a$%e

&11. Hor2in# capita% t'rno/er ratio : it i a% o 2no"n a Hor2in# Capita% Ae/era#e Ratio. Thi ratio in,icate "hether or not "or2in# capita% ha $een e!!ecti/e%. 'ti%ize, in ma2in# a%e . Form'%a : Net Sa%e Hor2in# Capita%

&13.Fi9e, A et T'rno/er ratio : thi ratio in,icate the e9tent to "hich the in/e tment in !i9e, a et contri$'te to"ar, a%e . Form'%a : Net Sa%e Fi9e, A et

&16 .Pa.Do't Ratio : Thi ratio in,icate "hat proportion o! earnin# per hare ha $een ' e, !or pa.in# ,i/i,en,.

Form'%a : *i/i,en, per E='it. Share K 1<< Earnin# per E='it. hare &17. O/era%% Pro!ita$i%it. Ratio : It i a% o ca%%e, a + Ret'rn on In/e tment0 (ROI) or Ret'rn on Capita% Emp%o.e, (ROCE) . It in,icate the percenta#e o! ret'rn on the tota% capita% emp%o.e, in the $' ine . Form'%a : Operatin# pro!it Capita% emp%o.e, K 1<<

The term capita% emp%o.e, ha $een #i/en ,i!!erent meanin# a. 'm tota% o! a%% a et "hether !i9e, or c'rrent $. 'm tota% o! !i9e, a et c. 'm tota% o! %on#Dterm !'n, emp%o.e, in the $' ine - i.e.hare capita% ?re er/e > 'rp%' ?%on# term %oan @(non $' ine a et ? !ictitio' a et ). Operatin# pro!it mean Mpro!it $e!ore intere t an, ta9E &1: . Fi9e, Intere t Co/er ratio : the ratio i /er. important !rom the %en,erE point o! /ie". It in,icate "hether the $' ine "o'%, earn '!!icient pro!it to pa. perio,ica%%. the intere t char#e . Form'%a : Income $e!ore intere t an, Ta9 Intere t Char#e

&&< . Fi9e, *i/i,en, Co/er ratio: Thi ratio i important !or pre!erence hareho%,er entit%e, to #et ,i/i,en, at a !i9e, rate in priorit. to other hareho%,er . Form'%a : Net Pro!it a!ter Intere t an, Ta9 Pre!erence *i/i,en, &&1. *e$t Ser/ice Co/era#e ratio: Thi ratio i e9p%aine, a$i%it. o! a compan. to ma2e pa.ment o! principa% amo'nt a% o on time. Form'%a : Net pro!it $e!ore intere t an, ta9 Intere t ? Principa% pa.ment in ta%%ment 1Ta9 rate

&&&. Proprietar. ratio: It i a /ariant o! ,e$tDe='it. ratio . It e ta$%i he re%ation hip $et"een the proprietorE !'n, an, the tota% tan#i$%e a et . Form'%a : Shareho%,er !'n, Tota% tan#i$%e a et

&&(. *i!!erence $et"een ;oint /ent're an, partner hip : 1In ;oint /ent're the $' ine i carrie, on "itho't ' in# a !irm nameIn the partner hip- the $' ine i carrie, on 'n,er a !irm name. &In the ;oint /ent're- the $' ine tran action are recor,e, 'n,er ca h . tem In the partner hip- the $' ine tran action are recor,e, 'n,er mercanti%e (In the ;oint /ent're- pro!it an, %o i a certaine, on comp%etion o! the /ent're In the partner hip - pro!it an, %o i a certaine, at the en, o! each .ear. )In the ;oint /ent're- it i con!ine, to a partic'%ar operation an, it i temporar.. In the partner hip- it i con!ine, to a partic'%ar operation an, it i permanent . &&). Meanin# o! Hor2in# capita%: The !'n, a/ai%a$%e !or con,'ctin# ,a. to ,a. operation o! an enterpri e. A% o repre ente, $. the e9ce o! c'rrent a et o/er c'rrent %ia$i%itie . &&1. Concept o! acco'ntin#: (in ,etai%) 1.B' ine entit. concept : D Accor,in# to thi concept- the $' ine i treate, a a eparate entit. ,i tinct !rom it . tem.

o"ner an, other . &.4oin# concern concept :D Accor,in# to thi concept- it i a 'me, that a $' ine ha a rea ona$%e e9pectation o! contin'in# $' ine at a pro!it !or an in,e!inite perio, o! time. (.Mone. mea 'rement concept :D Thi concept a. that the acco'ntin# recor, on%. tho e tran action "hich can $e e9pre e, in term o! mone. on%.. ).Co t concept :DAccor,in# to thi concept- an a et i recor,e, in the $oo2 at the price pai, to ac='ire it an, that thi co t i the $a i !or a%% '$ e='ent acco'ntin# !or the a et. 1.*'a% a pect concept :D In e/er. tran action- there "i%% $e t"o a pect @ the recei/in# a pect an, the #i/in# a pectI $oth are recor,e, $. ,e$itin# one acco'nt an, cre,itin# another acco'nt. Thi i ca%%e, ,o'$%e entr.. 3.Acco'ntin# perio, concept :D It mean the !ina% acco'nt m' t $e prepare, on a perio,ic $a i . Norma%%. acco'ntin# perio, a,opte, i one .ear- more than thi perio, re,'ce the 'ti%it. o! acco'ntin# ,ata. 6.Rea%ization concept :D Accor,in# to thi concept - re/en'e i con i,ere, a $ein# earne, on the ,ata "hich it i rea%ize,- i.e.- the ,ate "hen the propert. in #oo, pa e the $'.er an, he $ecome %e#a%%. %ia$%e to pa.. 7.Materia%it. concept :D It i a one o! the acco'ntin# princip%e- a per on%. important in!ormation "i%% $e ta2en- an, 'n important in!ormation "i%% $e i#nore, in the preparation o! the !inancia% tatement. :.Matchin# concept :D The co t or e9pen e o! a $' ine o! a partic'%ar perio, are compare, "ith the re/en'e o! the perio, in or,er to a certain the net pro!it an, %o . 1<.Accr'a% concept :D The pro!it ari e on%. "hen there i an increa e in o"ner capita%- "hich i a re '%t o! e9ce o! re/en'e o/er e9pen e an, %o . &&3. Financia% ana%. i : The proce o! interpretin# the pa t- pre ent- an, !'t're !inancia% con,ition o! a compan.. &&6. Income tatement: An acco'ntin# tatement "hich ho" the %e/e% o! re/en'e - e9pen e an, pro!it occ'rrin# !or a #i/en acco'ntin# perio,. &&7. Ann'a% report : The report i 'e, ann'a%%. $. a compan.- to it hare ho%,er . it containin# !inancia% tatement %i2etra,in# an, pro!it > %o e acco'nt an, $a%ance heet. &&:. Ban2r'pt : A tatement in "hich a !irm i 'na$%e to meet it o$%i#ation an, hence- it i a et are 'rren,ere, to co'rt !or a,mini tration &(< . Aea e : Aea e i a contract $et"een to partie 'n,er the contract- the o"ner o! the a et #i/e the ri#ht to ' e the a et to the ' er o/er an a#ree, perio, o! the time !or a con i,eration &(1. Opport'nit. co t : The co t a ociate, "ith not ,oin# omethin#. &(&. B',#etin# : The term $',#etin# i ' e, !or preparin# $',#et an, other pro,'cer !or p%annin#-coDor,ination-an, contro% o! $' ine enterpri e. &((. Capita% : The term capita% re!er to the tota% in/e tment o! compan. in mone.- tan#i$%e an, intan#i$%e a et . It i the tota% "ea%th o! a compan.. &(). Capita%ization : It i the 'm o! the par /a%'e o! toc2 an, $on, o't tan,in# . &(1. O/er capita%ization : Hhen a $' ine i 'na$%e to earn !air rate on it o't tan,in# ec'ritie . &(3. Fn,er capita%ization : Hhen a $' ine i a$%e to earn !air rate or o/er rate on it i o't tan,in# ec'ritie . &(6. Capita% #earin# : The term capita% #earin# re!er to the re%ation hip $et"een e='it. an, %on# term ,e$t. &(7. Co t o! capita% : It mean the minim'm rate o! ret'rn e9pecte, $. it in/e tment. &(:. Ca h ,i/i,en, : The pa.ment o! ,i/i,en, in ca h &)<. *e!ine the term accr'a% : Reco#nition o! re/en'e an, co t a the. are earne, or inc'rre, . it inc%',e reco#nition o! tran action re%atin# to a et an, %ia$i%itie a the. occ'r irre pecti/e o! the act'a% receipt or pa.ment . &)1. Accr'e, %ia$i%it. : A ,e/e%opin# $'t not .et en!orcea$%e c%aim $. an another per on "hich acc'm'%ate "ith the pa a#e o! time or the receipt o! er/ice or other"i e. it ma. ri e !rom the p'rcha e o! er/ice "hich at the ,ate o! acco'ntin# ha/e $een on%. part%. per!orme, an, are not .et $i%%a$%e. &)&. Con/ention o! F'%% ,i c%o 're: Accor,in# to thi con/ention- a%% acco'ntin# tatement ho'%, $e hone t%. prepare, an, to that en, !'%% ,i c%o 're o! a%% i#ni!icant in!ormation "i%% $e ma,e. &)(. Con/ention o! con i tenc. : Accor,in# to thi con/ention it i e entia% that acco'ntin# practice an, metho, remain 'nchan#e, !rom one .ear to another. &)). *e!ine the term pre%iminar. e9pen e : E9pen,it're re%atin# to the !ormation o! an enterpri e. There inc%',e %e#a% acco'ntin# an, hare i 'e e9pen e inc'rre, !or !ormation o! the enterpri e. &)1. Meanin# o! Char#e : char#e mean it i a o$%i#ation to ec're an in,e$t ne . It ma. $e !i9e, char#e an, !%oatin# char#e. &)3. Appropriation : It i app%ication o! pro!it to"ar, Re er/e an, *i/i,en, . &)6. Con/erti$%e *e$ent're : A ,e$ent're "hich #i/e the ho%,er a ri#ht to con/er ion "ho%%. or part%. in hare in accor,ance "ith term o! i 'e . &)7. Re,eema$%e Pre!erence Share : The pre!erence hare that i repa.a$%e either a!ter a !i9e, (or) ,etermina$%e perio, (or) at an. time ,i/i,en, $. the mana#ement. &):. C'm'%ati/e pre!erence hare : A c%a o! pre!erence hare entit%e, to pa.ment o! c'm'%ate ,i/i,en, . Pre!erence hare are a%"a. ,eeme, to $e c'm'%ati/e 'n%e the. are e9pre %. ma,e nonDc'm'%ati/e pre!erence hare .

&1<.*e$ent're re,emption re er/e : A re er/e create, !or the re,emption o! ,e$ent're at a !'t're ,ate. &11. C'm'%ati/e ,i/i,en, : A ,i/i,en, pa.a$%e a c'm'%ati/e pre!erence hare "hich it 'npai, c'm'%ate a a c%aim a#ain t the earnin# o! a corporate $e!ore an. ,i tri$'tion i ma,e to the other hareho%,er . &1&. *i/i,en, E='a%ization re er/e : A re er/e create, to maintain the rate o! ,i/i,en, in !'t're .ear . &1(. Openin# Stoc2 : The term Mopenin# toc2E mean #oo, %.in# 'n o%, "ith the $' ine man in the $e#innin# o! the acco'ntin# .ear. Thi i ho"n on the ,e$it i,e o! the tra,in# acco'nt. &1). C%o in# Stoc2 : The term MC%o in# Stoc2E inc%',e #oo, %.in# 'n o%, "ith the $' ine man at the en, o! the acco'ntin# .ear. The amo'nt o! c%o in# toc2 i ho"n on the cre,it i,e o! the tra,in# acco'nt an, a an a et in the $a%ance heet. &11. Ga%'ation o! c%o in# toc2 : The c%o in# toc2 i /a%'e, on the $a i o! +Co t or Mar2et price "hiche/er i %e 0 princip%e. &13. Contin#enc. : A con,ition (or) it'ation the '%timate o't come o! "hich #ain or %o "i%% $e 2no"n a ,etermine, on%. a the occ'rrence or non occ'rrence o! one or more 'ncertain !'t're e/ent . &16. Contin#ent A et : An a et the e9i tence o"ner hip or /a%'e o! "hich ma. $e 2no"n or ,etermine, on%. on the occ'rrence or non occ'rrence o! one more 'ncertain !'t're e/ent . &17. Contin#ent %ia$i%it. : An o$%i#ation to an e9i tin# con,ition or it'ation "hich ma. ari e in !'t're ,epen,in# on the occ'rrence o! one or more 'ncertain !'t're e/ent . &1:. *e!icienc.: the e9ce o! %ia$i%itie o/er a et o! an enterpri e at a #i/en ,ate i ca%%e, ,e!icienc.. &3<. *e!icit: The ,e$it $a%ance in the pro!it an, %o a8c i ca%%e, ,e!icit. &31. S'rp%' : Cre,it $a%ance in the pro!it > %o tatement a!ter pro/i,in# !or propo e, appropriation > ,i/i,en, re er/e . &3&. Capita% re,emption re er/e : A re er/e create, on re,emption o! the a/era#e co t:D the co t o! an item at a point o! time a ,etermine, $. app%.in# an a/era#e o! the co t o! a%% item o! the ame nat're o/er a perio,. Hhen "ei#ht are a% o app%ie, in the comp'tation it i terme, a "ei#ht a/era#e co t. &3(. F%oatin# Chan#e : A 'me chan#e on ome or a%% a et o! an enterpri e "hich are not attache, to peci!ic a et an, are #i/en a ec'rit. a#ain t ,e$t. &3). *i!!erence Bet"een the F'n, !%o" an, Income tatement : 1A !'n, !%o" tatement ,ea% "ith the !inancia% re o'rce re='ire, !or r'nnin# the $' ine acti/itie . It e9p%ain ho" "ere the !'n, o$taine, an, ho" "ere the. ' e,Hherea an income tatement ,i c%o e the re '%t o! the $' ine acti/itie - i.e.- ho" m'ch ha $een earne, an, ho" it ha $een pent. 3A !'n, !%o" tatement matche the +!'n, rai e,0 an, +!'n, app%ie,0 ,'rin# a partic'%ar perio,. The o'rce an, app%ication o! !'n, ma. $e o! capita% a "e%% a o! re/en'e nat're. An income tatement matche the income o! a perio, "ith the e9pen,it're o! that perio,"hich are $oth o! a re/en'e nat're. &31. *i!!erence $et"een F'n, !%o" an, Ca h !%o" tatement : 6A Ca h !%o" tatement i concerne, on%. "ith the chan#e in ca h po ition "hi%e a !'n, !%o" ana%. i i concerne, "ith chan#e in "or2in# capita% po ition $et"een t"o $a%ance heet ,ate . 7A ca h !%o" tatement i mere%. a recor, o! ca h receipt an, ,i $'r ement . Hhi%e t',.in# the hortDterm o%/enc. o! a $' ine one i intere te, not on%. in ca h $a%ance $'t a% o in the a et "hich are ea i%. con/erti$%e into ca h. &33 . A zeroDco'pon $on, (a% o ca%%e, a ,i co'nt $on, or ,eep ,i co'nt $on,) i a $on, $o'#ht at a price %o"er than it !ace /a%'e- "ith the !ace /a%'e repai, at the time o! mat'rit..N1O It ,oe not ma2e perio,ic intere t pa.ment - or ha/e oD ca%%e, Pco'pon -P hence the term zeroDco'pon $on,. In/e tor earn ret'rn !rom the compo'n,e, intere t a%% pai, at mat'rit. p%' the ,i!!erence $et"een the ,i co'nte, price o! the $on, an, it par (or re,emption) /a%'e. E9amp%e o! zeroDco'pon $on, inc%',e F.S. Trea 'r. $i%% - F.S. a/in# $on, - %on#Dterm zeroDco'pon $on, -N1O an, an. t.pe o! co'pon $on, that ha $een trippe, o! it co'pon . &66. An in/e tment $an2 i a !inancia% in tit'tion that a i t corporation an, #o/ernment in rai in# capita% $. 'n,er"ritin# an, actin# a the a#ent in the i 'ance o! ec'ritie . An in/e tment $an2 a% o a i t companie in/o%/e, in mer#er an, ac='i ition - ,eri/ati/e - etc. F'rther it pro/i,e anci%%ar. er/ice 'ch a mar2et ma2in# an, the tra,in# o! ,eri/ati/e - !i9e, income in tr'ment - !orei#n e9chan#e- commo,it.- an, e='it. ec'ritie

&77. ,i!!erence $et"een ,e$it car, an, cre,it car, ATM car, i the car, "hich can $e ' e, in A'tomate, Te%%er Machine . I! .o' ha/e mone. in .o'r acco'nt- .o' can ta2e mone. ' in# thi ATM car, !rom the ATM machine ' in# .o'r per ona%ize, PIN n'm$er. It a% o can $e ca%%e, a ,e$it car,. B't remem$er- .o' can #et mone. ' in# thi car, on%. "hen .o' ha/e '!!icient $a%ance in .o'r acco'nt.

On the other han,- cre,it car, i a 2in, o! cre,it .o' #et !rom the $an2 a the name '##e t . E/en i! .o' ha/e no '!!icient mone. in .o'r $an2- .o' can ta2e mone. or .o' can $'. an. artic%e ' in# cre,it car, 'p to the cre,it %imit. Qo' can pa. $ac2 the mone. to the $an2 a!ter a #i/en perio, o! time. He can ' e ,e$it car, a "e%% a cre,it car, !or hoppin# on%ine or $'.in# an. artic%e !rom the hop. Qo' a% o can pa. te%ephone $i%% - c'rrent $i%% an, e/en rechar#e .o'r prepai, mo$i%e ' in# the e car, on%ine. Man. $an2 #i/e the e !aci%itie . &::. difference betwen accounting and finance Acco'ntin# i $a ica%%. the . tem o! ma2in# recor, - /eri!ication an, reportin# o! /a%'e o! a et - %ia$i%itie - e9pen e an, income in the acco'nt $oo2 . The tran action are po te, chrono%o#ica%%. to recor, chan#e in /a%'e o! a et an, %ia$i%itie . On the other han,- Finance re!er to the time- mone. an, ri 2 a ociate, "ith a peci!ic $' ine . Finance i ,i!!erent $eca' e it "or2 on the acco'ntin# in!ormation to pre,ict !'t're tren, or to ma2e ,eci ion a$o't the !'t're. (<<. !inancia% in tr'ment o! mone. mar2et (<1. "hat i the ;o'rna% entr. !or $a, ,e$t R Bad Debts A/c Dr To *e$tor8C' tomer A8c (<&. "hat i the Entr. !or Prepai, e9pen e R "hich i,e it come in $a%ance heetR prepaid expense a/c dr to particular expense a/c cr prepai, e9pen e come on the a et i,e o! $a%ance heet. (<(. in,e9 A toc2 mar2et in,e9 i a metho, o! mea 'rin# a ection o! the toc2 mar2et. Man. in,ice are cite, $. ne" or !inancia% er/ice !irm an, are ' e, a $enchmar2 - to mea 're the per!ormance o! port!o%io 'ch a m't'a% !'n, . A national in,e9 repre ent the per!ormance o! the toc2 mar2et o! a #i/en nationSan, $. pro9.- re!%ect in/e tor entiment on the tate o! it econom.. More than )<<< Companie are %i te, in BSE or Bom$a. Stoc2 E9chan#e Top (< companie !orm to#ether the premier in,e9 ca%%e, SENSEK. In SENSEK ,i!!erent "ei#ht are a%%ocate, to each compan.. The e companie repre ent a%% the ma;or ector o! In,ian econom.. NSE Stan, !or Nationa% Stoc2 E9chan#e. It ha more than &<<< toc2 !rom ,i!!erent ector %i te, "ith it. It i !'%%. a'tomate, e%ectronic or,er proce in# e9chan#e. Ni!t. i ma;or in,e9 o! NSE an, it compri e, o! 1< cript !rom ,i!!erent ector . The NSE in,e9 i ca%c'%ate, ' in# the 1< mo t pro!ita$%e an, %ar#e t companie in In,ia "hich are %i te, in the NSE. Thi in,e9 i ca%%e, Ni!t.. Some companie %i te, in it are Re%iance In,' trie - ICICI Ban2- Aar en > To'$ro- 5*FC Ban25ero hon,a etc...