Knowledge in Finance (Accounting etc)

Finance - Project Finance

Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.

Finance - Banking Operations

In another sense, banking operations involves the practices and procedures that a bank uses to ensure that customers' transactions are completed accurately and appropriately. ... Retail banking provides services to the general public, including mortgages, loans, deposits, and checking accounts.

Derivatives

The document covers - Types of derivatives Types of options Put call parity Methods to value an option Effects of underlying variables on option pricing Common trading strategies with options Credit default Swap Interest rate swap

Investments

The pdf covers- Mutual Funds Capital Allocation to risky assets Capital Allocation Line and Capital Market Line Optimal Risky Portfolio Markowitz Portfolio Optimization Model Capital Asset Pricing Model (CAPM) Portfolio Performance Evaluation Bond Prices and Yields Term Structure of Interest rates Bond Portfolio Durations

Banking, Financial Markets and Systems

The document covers- Net Interest Margin Fisher Effect Net demand and time Liabilities Tier 1 capital and Tier 2 capital Basel 2 Liquidity risk Asset Backed Securities Collateralised Debt Obligations

INTRODUCTION OF DATABASE IN POINTS (First semester notes) Chapter-1 (Part-4) Makhanlal chaturvedi national University,Bhopal

(Part-4) IN This, There is a chapter SEVEN of DATABASE MANAGEMENT SYSTEM Subject Part-4 named INTRODUCTION OF DATABASE MANAGEMENT SYSTEM Makhanlal Chaturvedi national journalism and communication University, Bhopal. There is a very important note oF DATABASE MANAGEMENT SYSTEM For BCA first semester Students. Share with your friends and help them to learn Fundamental of Computers. There are Five subjects in BCA first semester .

what is Practical,Normal ,Maximum ,Actual ,Idle capacity ? capacity of a firm in details

Practical Capacity :It refers to the production capacity of a firm taking into consideration various internal and external factors within which the firm operates .Normal capacity :It refers to the production capacity of a firm at which the firm can operate in normal situationMaximum capacity :It refers to the capacity at which the firm can operate using all the factors of production to fullest extent . in the capacity beyond which the firm can't produce more . A firm can't operate at this capacity for a long period .It causes damage to machine .In emergent situation this capacity is used .Actual capacity : It refers to the production capacity of a firm at which the firm producing at present .It may any capacity from start to maximum .Usually the firm operate at normal capacity .Idle capacity :It refers to the capacity which remains idle in other word the capacity which remains unused .The reasons for such idle capacity is shortage of material , machine brokedown , power failure , waiting for instruction etc .Idle capacity = Normal capacity -Actual capacity

Method of Costing

METHOD OF COSTING MEANING: There are various method or type of costing , but the basic principal underlying all these methods or type are the same .The basic principal are to collect and analyse the expenditure according to elements of cost and to determine the cost for each cost center or cost unit . The nature of the manufacturing operation carried out of the nature of the services rendered by a concern decides the method applicable to it . Broadly speaking , there are three main method of costing ---1. job costing , process costing , and farm costing , the other are either variants of these three method or are techniques use for a particular purpose under particular condition .  METHOD OF COSTING  1. JOB COSTING 2. PROCESS COSTING 3. FARM COSTING 1. JOB COSTING : Under this method , the cost unit is taken to be a job ,small or big , comparison of a definite quantity of a product manufactured . So , the approach is product approach . Job costing system is used where it is desired to ascertain the cost of a job or a specific order or of a batch of finished goods and also profit or loss each such job . Thus , painters , publisher , machine tool manufacturers , caterers , job foundries , builders etc . use job costing system . 2. PROCESS COSTING : Process represents type of costing for continuous and mass production industry . In such industry output consists of like unit each unit being process in same manner . Therefore it is assumed that all same amount of material , labour and overhead is chargable to each unit processed . cost are assumulated on the process basic records of unit product are variable . 3. FARM COSTING : The agriculture farms are quite different from the manufacturing industry in many respect . Manufacturing industry used standard plants which gives standard output .Plant of a farm is highly influenced by climate , rainfall , nature of manuring , nature of labour used at different stages from showing to harvesting , nature of seeds used etc . Manufacturing product are not influenced by these factors . Another peculiarity of a farm is that output of a period in part at least , is used as the input of the period following . paddy potato ,onion etc . produced in one year are preserved for using them as seeds in the next year.

Type of costs in cost accounting

cost accountingAns:Cost accounting is an accounting process that measures and analyzes the costs associated with products, production, and projects, so that correct amounts are reported on a company's financial statements. Cost accounting aids in decision-making processes by allowing a company to calculate, evaluate, and monitor its costs.Below are some of the types of costs used in cost accounting:1. Direct Costs Direct costs are related to producing a good or service. A direct cost includes materials, labor, expense, or distribution cost associated with producing a product. It can be easily traced to a product, department or project. For example, Ford Motor Company  manufactures cars and trucks. A plant worker spends eight hours building a car. The direct costs associated with the car are the wages paid to the worker and the parts used to build the car.2. Indirect CostsIndirect costs, on the other hand, are expenses unrelated to producing a good or service. An indirect cost cannot be easily traced to a product, department, activity or project. For example, with Ford Motor Company the direct costs associated with each vehicle include tires and steel. However, the electricity used to power the plant is considered an indirect cost because the electricity is used for all the products made in the plant. No one product can be traced back to the electric bill.3. Fixed CostsFixed costs do not vary with the number of goods or services a company produces. For example, suppose a company leases a machine for production for two years. The company has to pay Rs. 2,000 per month to cover the cost of the lease. The lease payment is considered a fixed cost as it remains unchanged.4. Variable CostsVariable costs fluctuate as the level of production output changes, contrary to a fixed cost. This type of cost varies depending on the number of products a company produces. A variable cost increases as the production volume increases, and it falls as the production volume decreases. For example, a toy manufacturer must package its toys before shipping products out to stores. This is considered a type of variable cost because, as the manufacturer produces more toys, its packaging costs increase. However, if the toy manufacturer's production level is decreasing, the variable cost associated with the packaging decreases5. Operating CostsOperating costs are expenses associated with day-to-day business activities but are not traced back to one product. Operating costs can be variable or fixed. Examples of operating costs, which are more commonly called operating expenses, include rent and utilities for a manufacturing plant. Operating costs are day-to-day expenses, but are not classified as costs of producing the products. Investors can calculate a company's operating expense ratio, which shows how efficient a company is in using their costs to generate sales.6. Opportunity CostOpportunity cost is the benefit given up when one decision is made over another. In other words, an opportunity cost represents an alternative given up when a decision is made. This cost is, therefore, most relevant for two mutually exclusive events. In investing, it's the difference in return between a chosen investment and one that is passed up. For companies, opportunity costs do not show up in the financial statements but are useful in planning by management. For example, if a company decides to buy a new piece of manufacturing equipment rather than lease it. The opportunity cost would be the difference between the cost of the cash outlay for the equipment and the improved productivity versus how much money could have been saved had the money been used to pay down debt.7. Sunk CostsSunk costs are historical costs that have already been incurred and will not make any difference in the current decisions by management. Sunk costs are those costs that a company has committed to and are unavoidable or unrecoverable costs. Sunk costs (past costs) are excluded from future business decisions because the costs will be the same regardless of the outcome of a decision.8. Controllable CostsControllable costs are expenses managers has control over and have the power to increase or decrease. For example, deciding on how supplies are ordered or the payroll for a manufacturing company would be controllable, but not necessarily avoidable.

Partnership accounting

PARTNERSHIP ACCOUNT--Appropriation of profit 1) what is partnership account ? => the Indian partnership act 1932 , defines a partnership as '' the relation between person who have agreed to share the profit of a business carried on by all or any of them acting for all''2) what is partners ? => the act further states that person who have entered into partnership are called individually partners 3) partnership Agreement (or deed) : => The agreement determining the right of partners inter se may be in written , verbal or implied from the usual conduct of the partners . Whatever possible , an express agreement in written is advisable so that each partners becomes aware of his partnership terms . Such a written agreement is technically referred to as partnership deed . A list of the more important contents of partnership deed is enumerated below a) The duties and responsibility of each partners b) The amount of capital initially to be introduced by each partner .c) whether the partners ' capital contributions are to remain fixed or not d) the proportion in which profits and losses are to be shared .e) The salaries , if at all , to be paid to each partners . f) The method of the maintaining and auditing accounts .g) the admission of new partners and the retirement of existing partners . 4) Appropriation of profits : => The profit of a partnership firm may be appropriated either as such or partly in the form of interest of capital / loan , salary , commission ,etc . and the balance as profit .The mode of appropriation depends on the partnership agreement , in the absence of any agreement , section 13 of the partnership act will apply . According to this section , in the absence of any agreement to the contrary a) all partners are entitled to an equal share in the profit of the business , and must contribute equally towards the losses sustained by firm .b) A partners making any advance beyond the amount of capital which he has agreed to subscribe i.e., a loan is entitled to interest at the rate of 6%per annum from the date of advance c) A partners is not entitled to interest on the capital  subscribed by him . d) No partners shall be entitled to any remuneration as salary or otherwise for acting in the partnership business .e) If partners are entitled to interest on capital as per agreement , such interest is payable only out of profit .

Basic Accounting definitions

ACCOUNTING: Accounting can be defined as the subject by studying which the records of all monetary transaction of an individual , non - trading concern ,business undertaking and other for a particular period can be satisfactorily maintained and the result of transaction during given period can be analysed and measured at the end of the given period .Accounting is now more an information system then a mechanism for recording transaction and ascertaining the result thereofFINANCIAL ACCOUNTING : financial accounting deals with the recording of all financial transaction and preparation of statement for the use by management , outsiders like shareholders , banks or other financial institution , creditors etc.COST ACCOUNTING : Cost accounting is concerned with the ascertainment of all cost of various products and services and is used as the tool for controlling expenditure..

Count Nouns vs. Non-Count Nouns

Count nounsCan be counted as one or more.pen, computer, bottle, spoon, desk, cup, television, chair, shoe, finger, flower, camera, stick, balloon, book, table, comb, etc.Take an s to form the plural.pens, computers, bottles, spoons, desks, cups, televisions, chairs, shoes, fingers, flowers, cameras, sticks, balloons, books, tables, combs, etc.Work with expressions such as (a few, few, many, some, every, each, these, and the number of).a few pens, a few computers, many bottles, some spoons, every desk, each cup, these televisions, the number of chairs, a few shoes, a few fingers, many flowers, some cameras, every stick, each balloon, these books, the number of tables, many combs, etc.Work with appropriate articles (a, an, or the).a pen, the computer, a bottle, the spoon, a desk, the cup, a television, the chair, a shoe, the finger, a flower, the camera, a stick, the balloon, a book, the table, a comb, etc.Do NOT work with much (for example, you would never say much pens or much computers).Non-count nounsCannot be counted. They usually express a group or a type.water, wood, ice, air, oxygen, English, Spanish, traffic, furniture, milk, wine, sugar, rice, meat, flour, soccer, sunshine, etc.Generally cannot be pluralized.Work both with and without an article (a, an, or the), depending on the context of the sentence.Sugar is sweet.The sunshine is beautiful.I drink milk.He eats rice.We watch soccer together.The wood is burning.Work with expressions such as (some, any, enough, this, that, and much).We ate some rice and milk.I hope to see some sunshine today.This meat is good.She does not speak much Spanish.Do you see any traffic on the road?That wine is very old.Do NOT work with expressions such as (these, those, every, each, either, or neither).QuizChoose all of the non-count nouns in the following list:wine, student, pen, water, wind, milk, computer, furniture, cup, rice, box, watch, potato, woodView Answerswine, water, wind, milk, furniture, rice, wood