Asset turnover ratio - This ratio can be explained as Net assets / Total turnover or sales. Thisratio measures the operational efficiency of business assets. In simple terms this measures how many time total assets turned in a year and how efficiently the assets are used in a business.
Amortization - It is an accounting technique by which intangible assets are written off over a period of time. For example provision for doubtful debts or preliminary expenses are written off over a certain period of time.
>>Audit - Financial statement and physical stock is checked annually by professional auditor(Chartered Accountant affiliated by ICAI in India)
>>Capital gain - Gain by selling a capital asset in which a person is not doing business. Income byselling a house by a bank employee is a capital gain whereas when a builder do the same thing it is Income from business and professional.
>>Current asset - An asset that can be converted into cash with 12 months. For example - debtors,stock etc.
>>Credit rating - A ranking applied to an individual, business or a nation based upon its credit history and current financial position. There are various credit rating companies in India such as Crisil.
>>CPI - Consumer price index is measure to find price of a bundle of commodities.CPI is used to measure the inflation in a country.
>>Depreciation - Depreciation is reduction in value of an asset due wear and tear over a period of time. For example a company purchased a machine in 2005 and planned to charge 20% depreciation. In 2010 the machine will be written off from the books of account.
>>Dividend - Dividend is the amount per share paid by a company to its shareholders. Dividend value is based upon company's profitability
>>GDP - Gross domestic product is the aggregate value of goods and services produced by every person of a nation.
>>GST - Goods and services tax is the same tax system for everything. It is proposed that GST will replace the multi tax system in India by 2015.
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