What Does it Mean? Loans, insurance and other agreements generally offer a built-in grace period, which is the additional time provided after the due date to clear your pending payments. After this period ends, a penalty may be applied as per the terms and conditions. During the grace period, contracts and loans cannot be marked …
Post Type Archives: Glossary
Gross Domestic Product
The answer to what is Gross Domestic Product (GDP) is that it is the final monetary value of all finished goods and services that a country produces in a specific duration. Gross Domestic Product measures the overall domestic production and provides insights into a country’s economic health. In India, the agricultural, services and industrial sectors …
Gross Interest
Gross interest is the yearly rate of interest that you receive when you invest in various vehicles such as a security or a fixed deposit. It refers to the interest before tax or before other fees are applied. Gross interest can also apply to the annual interest due on a loan. Be aware that gross …
Gross Profit
Gross profit is also called sales profit or gross income. It refers to the profit you make after deducting the costs. Gross profit usually applies to companies who sell goods by subtracting the cost of manufacturing and all other processes from the sales proceeds. Generally, Gross profit = Revenue or net sales – Cost of …
Gross Profit Margin
Gross profit margin is the revenue that a company retains post calculating the cost of goods sold (COGS). It depicts the profit that a company made prior to deducting general, selling and administrative expenses, which is the net profit margin of the company. The formula to calculate gross profit margin = (Total Revenue – Cost …
Guarantor
A guarantor, meaning a person who signs up to repay a loan if the primary borrower cannot, is a term most often used in relation to borrowing. However, a guarantor can also corroborate the identity of a person, for instance, if you are looking to get a job. In the financial sense, the guarantor definition …
House Loan
What is a House Loan? A house loan refers to the financing you can get from a financial institution to purchase real estate. It is also known as a mortgage loan and is backed by your property as collateral. There are many types of house loan options that can be customised to meet your requirements. …
Income Statement
What is an Income Statement? An income statement represents the financial status of a company for a given period, which may be quarterly, monthly, annual, or any other specific time. It reflects the net profit and loss of organizations and their performance which can help in managing their market value. As such, it is also …
Indirect Tax
While calculating your income tax, you may wonder, what is indirect tax? As you can guess, the indirect tax meaning is opposite to that of direct tax. Indirect tax refers to the taxes that government imposes on goods and services. This means you can transfer your indirect tax obligations to another individual or entity. Moreover, …
Inflation
Inflation means the hike in the cost of goods and services in a particular economy over time. For instance, what you could buy with ₹1,000 in 1985 took approximately ₹13,000 in 2021. This decrease in purchasing power is called inflation. Inflation is a significant economic factor that impacts various sectors such as food, fuel, and …