A gift card refers to a prepaid card loaded with a specific amount that you can use to purchase goods and services or to make other financial transactions. Store gift cards (closed loop) facilitate purchases at specific retailers. Conversely, general prepaid gift cards (open loop) are acceptable for various types of transactions. Some examples of …
Post Type Archives: Glossary
Goods and Services Tax
GST or Goods and Services Tax is a single indirect tax that is applied to the goods and services you buy or sell in India. It has been designed to simplify the taxation system and make it more transparent for all, eliminating a range of indirect taxes, cascading taxes and evasion of taxes. This comprehensive …
Grace Period
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 …
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 …