Finance is a broad term used to refer to creating and managing money in the form of investments, debt or loans, securities and more for individuals, companies and the government. Government policies regarding currency, repo rates, the budget and the rate at which loans are given out by financial institutions all come under finance. Its …
Post Type Archives: Glossary
Financial Crisis
A financial crisis is when the value of assets experiences a sharp decline. Businesses and customers struggle to make debt repayments, and financial institutions experience liquidity shortages. In such cases, investors sell their assets, and the public withdraws funds from the banks due to the fear of a decrease in the value of assets. A …
Financial Statement
Financial statements refer to the written records of monetary transactions of an individual or an organisation. It is basically important to check the financial position of the company. For a business, financial statements may include income, cash flow, profit and loss statements and balance sheets. For an individual, financial statements generally refer to bank statements …
Financial Year
A financial year is a period of one year and starts on April 1 in India and ends on March 31 of the following year. For instance, FY 2022, means that the year begins on April 1, 2022, and ends on March 31, 2023. A financial year is also called a fiscal year. You pay …
Fiscal
Fiscal refers to government earnings, especially via taxes. This term may overcover government revenue, debt, financial policy or budget. In certain cases, fiscal and financial may also be considered synonyms. For instance, a fiscal year or financial year in India is between April 1 of Year 1 to March 31 of Year 2.
Fixed Assets
What does it mean? Assets that are owned by organizations for long periods which are utilized for generating revenue or long term financial gain are known as that organization’s fixed assets. They are also referred to as capital assets. Points to remember Fixed Assets are a crucial part of any company. If the efficiency of …
Fixed Income
Fixed income refers to investment products that provide a fixed or predetermined return on investment, typically in the form of interest payments. It includes bonds, debentures and fixed deposits, where the return is fixed and not dependent on market fluctuations. For instance, if you invest ₹15,000 in an FD with a 7.30% interest for 2 …
Fixed Interest Rate
A fixed interest rate is a rate that doesn’t change with time. Getting a loan on a fixed interest rate means the rate remains the same instead of fluctuating. Usually, borrowers prefer fixed interest rate loans as the EMIs are unchanging, and repayment can be planned and managed easily. However, fixed interest rates are higher …
Flat Tax
The flat tax meaning is often confused with direct tax, but the two concepts are not the same. Flat tax refers to the tax system where all taxpayers, regardless of their income, are subject to a uniform tax rate. The flat tax system typically does not offer any exemptions or deductions. To understand this better, …
Fund Balance
If you are wondering what is fund balance, it is connected to state-wise government spending. Fund balance refers to the available resources that a state government has to finance various activities. Fund balance can be separated into different categories or types of funds. In terms of calculation, fund balance = Revenue – Expenditure