Category: Daily Bites

The process of expensing for intangible assets such as goodwill and intellectual property over a period of time.

A stern measure of a company’s ability to pay its short term debts, in that stock is excluded from asset value. (liquid assets/current liabilities) Also referred to as the Quick Ratio.

A fund that tries to mirror the performance of an index by investing in securities making up that index. (note: it is not possible for investors to actually invest in the actual index, such as the BSE 30). This is a passive management style which normally results in lower management fees.

A Fully Convertible Non-Rupee account that can be opened for funds coming in from abroad or from local funds. The funds in the account are held in a foreign currency.

Account Payable: a record of all short-term (less than 12 months) invoices, bills, and other liabilities yet to be paid. Examples of accounts payable include invoices for goods or services, bills forutilities,s and tax payments due.