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FINANCIAL TERMINOLOGIES

SUBMITTED BY

GROUP TRADEMARKS
GROUP 2

RISK RETURN TRADE OFF

Return :It is defined as the annual income received plus any change in market price for a given period.

Risk:The variability of actual return from the expected return.So greater the variability riskier the security is.

RISK RETURN TRADE OFFCONTD

Risk return trade off:It establishes the relationship between risk and return. Risk and Return are directly proportional to each other. ie higher the return or yield the larger the risk

DEBENTURES

A Debenture is a document under the companys seal which provides for the payments of a principal sum and interest

secured with a fixed or floating charge on the companys


property.

A debenture holder is a creditor of the company.


A fixed rate of interest is payable on debentures.

TYPES OF DEBENTURES

Simple/ Naked/ Unsecured debentures Secured/ Mortgaged debentures

Bearer debentures
Registered debentures

BONDS

A bonds a debt security. Obliged to pay interest or to pay the principal at a later date, termed maturity.

A bond is a formal contract to repay borrowed money with interest at fixed intervals.

FEATURES OF BONDS

A Bond is like a loan.

Bonds and Stocks are both securities.

Bond is similar to that of debenture.

COST ACCOUNTING

Aims to capture a company's costs of production by

assessing the input costs.

Cost accounting will first measure and record these costs individually.

Compare input results to output or actual results. Helps company management in measuring financial performance.

It provides management with costs for products,

inventories, operations or functions

It also provides a variety of data for many day-to-day decisions.

Helps management in making strategic decisions by identifying an organisation.

Cost accounting is a very important part of the

management accounting process.

In order for managers to determine the best methods to increase a company's profitability,

Cost accounting is a necessary system in the management of a company's budget,

Providing important data to analyze fluctuation in company production costs.

DIRECT COSTING

Charging all direct cost ,variable and some fixed cost. Direct materials which enter into and form of product. All materials specially purchased for a particular process or job or production process. All primary packing materials,wrappings,cartoons,pepsibottle cans

DUPONT ANALYSIS
Systematic Approach to financial statements. It is used for the firms financial planning and control. It helps to pinpoint the factors affecting changes in profitability. ROA(RETURN ON ASSETS)=net profit margin ratio*total assets turnover ratio

CALCULATION

ROE=Net Income/Equity i.e Net Income/sales*sales/total assets*total assets/equity

PRESENTED BY,
JISHA SUSAN JAISON SANDHYA RANI NEVIN THOMAS NIPIN RAJU ABHISHEK MOHAMMED ANSAR

SUBMITTED TO

PROF.RAJESH JANARDHAN ASSISTANT PROFESSORFINANCE