Some basic important concepts
- definition of accounting: “the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results there of”.
- book keeping:
It is mainly concerned with recording of financial data relating to the
business operations in a significant and orderly manner.
3. Branches of accounting
a.
financial accounting
b. management accounting
c.
cost accounting
4. Concepts of accounting:
A.
separate entity concept B. going concern concept
C.
money measurement concept D. cost concept
E. dual aspect concept
F. accounting period concept
G.
periodic matching of costs and revenue concept H.
realization concept.
5 Conventions of accounting
A. conservatism
B.
full disclosure
C. consistency
D materiality.
6. Systems of book keeping:
A.
single entry system
B. double entry system
7. Systems of accounting
A.
cash system accounting
B.
mercantile system of accounting.
8. Principles of accounting (golden rules for accounting)
a. personal a/c : debit the
receiver
Credit
the giver
b. real a/c : debit what comes in
Credit what goes out
c. nominal a/c : debit all
expenses and losses
credit all gains and incomes
9. Meaning of journal: journal means chronological record of
transactions.
10 Meaning of ledger: ledger is a
set of accounts. It contains all accounts of the business enterprise whether
real, nominal, personal.
11. Posting: it means
transferring the debit and credit items from the journal to their respective
accounts in the ledger.
12. Trial balance: trial balance
is a statement containing the various ledger balances on a particular date.
13. Credit note: the customer
when returns the goods get credit for the value of the goods returned. A credit
note is sent to him intimating that his a/c has been credited with the value of
the goods returned.
14. Debit note: when the
goods are returned to the supplier, a debit note is sent to him indicating that
his a/c has been debited with the amount mentioned in the debit note.
15. Contra entry: which
accounting entry is recorded on both the debit and credit side of the cash book
is known as the contra entry.
16. Petty cash book: petty cash is
maintained by business to record petty cash expenses of the business, such as postage,
cartage, stationery, etc.
17.promisory note: an instrument
in writing containing an unconditional undertaking signed by the maker, to pay
certain sum of money only to or to the order of a certain person or to the
barer of the instrument.
18. Cheque: a bill of exchange
drawn on a specified banker and payable on demand.
19. Stale cheque: a stale cheque
means not valid of cheque that means more than six months the cheque is not
valid.
20. Bank reconciliation statement: it is a statement reconciling the balance as
shown by the bank pass book and the balance as shown by the Cash Book. Obj:
to know the difference & pass necessary correcting, adjusting
entries in the books.
21. Matching concept: matching means
requires proper matching of expense with the revenue.
22. Capital income: the term
capital income means an income which does not grow out of or pertain to the
running of the business proper.
23. Revenue income: the income
which arises out of and in the course of the regular business transactions of a
concern.
24. Capital expenditure: it means an
expenditure which has been incurred for the purpose of obtaining a long term
advantage for the business.
25. Revenue expenditure: an
expenditure that incurred in the course of regular business transactions of a concern.
26. Differed revenue expenditure: an expenditure
which is incurred during an accounting period but is applicable further periods
also. Eg: heavy
advertisement.
27. Bad debts: bad debts
denote the amount lost from debtors to whom the goods were sold on credit.
28. Depreciation: depreciation
denotes gradually and permanent decrease in the value of asset due to wear and tear,
technology changes, laps of time and accident.
29. Fictitious assets: These are
assets not represented by tangible possession or property. Examples of
preliminary expenses, discount on issue of shares, debit balance in the profit
and loss account when shown on the assets side in the balance sheet.
30.Intanglbe Assets : Intangible
assets means the assets which is not having the physical appearance. And its
have the real value, it shown on the assets side of the balance sheet.
31. Accrued Income : Accrued
income means income which has been
earned by the business during the accounting year but which has not yet been
due and, therefore, has not been received.
32. Out standing Income : Outstanding
Income means income which has become due during the accounting year but which
has not so far been received by the firm.
33. Suspense account: the suspense
account is an account to which the difference in the trial balance has been put
temporarily.
34. Depletion: it implies
removal of an available but not replaceable source, Such as extracting coal
from a coal mine.
35. Amortization: the process of writing of intangible assets
is term as amortization.
36. Dilapidations: the term
dilapidations to damage done to a building or other property during tenancy.
37. Capital employed: the term
capital employed means sum of total long term funds employed in the business.
i.e.
(share capital+ reserves & surplus +long
term loans – (non business assets + fictitious assets)
38. Equity shares: those shares
which are not having pref. rights are called equity shares.
39. Pref.shares: Those shares which are carrying the
pref.rights is called pref. shares
Pref.rights in
respect of fixed dividend.
Pref.right to
repayment of capital in the even of company winding up.
40. Leverage: It is a force applied at a particular point
to get the desired result.
41. Operating
leverage: the operating leverage
takes place when a changes in revenue
greater changes in EBIT.
42. Financial leverage : it is nothing but a process of using debt
capital to increase the rate of return on equity
43.
Combine leverage: it is used to measure
of the total risk of the firm = operating risk + financial risk.
44.
Joint venture : A joint
venture is an association of two or more the persons who combined for the
execution of a specific transaction and divide the profit or loss their of an
agreed ratio.
45.
Partnership: partnership is
the relation b/w the persons who have agreed to share the profits of business
carried on by all or any of them acting for all.
46. Factoring:
It is an arrangement under which
a firm (called borrower) receives advances against its receivables, from a
financial institutions (called factor)
47. Capital
reserve: The reserve which
transferred from the capital gains is called capital reserve.
48. General
reserve: the reserve which is
transferred from normal profits of the firm is called general reserve
49. Free Cash: The cash not for any specific purpose free
from any encumbrance like surplus cash.
50. Minority Interest: minority interest refers to the equity of
the minority shareholders in a subsidiary company.
51. Capital receipts: capital receipts may be defined as
“non-recurring receipts from the owner of the business or lender of the money
crating a liability to either of them.
52. Revenue receipts: Revenue receipts may defined as “A
recurring receipts against sale of goods in the normal course of business and
which generally the result of the trading activities”.
53. Meaning of Company: A company is an association of many persons
who contribute money or money’s worth to common stock and employs it for a
common purpose. The common stock so contributed is denoted in money and is the
capital of the company.
54. Types of a company:
- Statutory companies
- government company
- foreign company
- Registered companies:
a. Companies limited by shares
b. Companies limited by guarantee
c. Unlimited companies
D. private company
E. public company
55. Private company: A private co. is which by its AOA:
Restricts the
right of the members to transfer of shares
Limits the no.
of members 50.
Prohibits any
Invitation to the public to subscribe for its shares or debentures.
56. Public company: A company, the articles of association of
which does not contain the requisite restrictions to make it a private limited
company, is called a public company..
57. Characteristics of a company:
Voluntary
association
Separate legal
entity
Free transfer
of shares
Limited
liability
Common seal
Perpetual
existence.
58. Formation of company:
Promotion
Incorporation
Commencement
of business
59. Equity share capital: The total sum of equity shares is called
equity share capital.
60. Authorized share capital: it is the maximum amount of the share capital
which a company can raise for the time being.
61. Issued capital: It is that part of the authorized capital
which has been allotted to the public for subscriptions.
62. Subscribed capital: it is the part of the issued capital which
has been allotted to the public
63. Called up capital: It has been portion of the subscribed capital
which has been called up by the company.
64. Paid up capital: It is the portion of the called up capital
against which payment has been received.
65. Debentures: Debenture is a certificate issued by a
company under its seal acknowledging a debt due by it to its holder.
66. Cash profit: cash profit is the profit it is occurred
from the cash sales.
67. Deemed public Ltd. Company: A private company is a subsidiary company to
public company it satisfies the following terms/conditions Sec 3(1)3:
1. having minimum share capital 5 lakhs
2. accepting investments from the public
3. no restriction of the transferable of shares
4. No restriction of no. of members.
5. accepting deposits from the investors
68. Secret reserves: secret reserves are reserves the existence
of which does not appear on the face of balance sheet. In such a situation, net
assets position of the business is stronger than that disclosed by the balance
sheet.
These
reserves are created by:
1. Excessive dep.of an asset, excessive
over-valuation of a liability.
2. Complete elimination of an asset, or under
valuation of an asset.
69. Provision: provision usually means any amount written
off or retained by way of providing depreciation, renewals or diminutions in
the value of assets or retained by way of providing for any known liability of
which the amount can not be determined with substantial accuracy.
70. Reserve: The provision in excess of the amount
considered necessary for the purpose it was originally made is also considered
as reserve
Provision is
charge against profits while reserves is
an appropriation of profits
Creation of
reserve increase proprietor’s fund while creation of provisions decreases his
funds in the business.
71. Reserve fund: the term reserve fund means such reserve
against which clearly investment etc.,
72. Undisclosed reserves: Sometimes a reserve is created but its
identity is merged with some other a/c or group of accounts so that the
existence of the reserve is not known such reserve is called an undisclosed
reserve.
73. finance management: financial management deals with procurement
of funds and their effective utilization in business.
74. Objectives of financial
management: financial
management having two objectives that Is:
1. Profit maximization: the finance manager has to make his
decisions in a manner so that the profits of the concern are maximized.
2. Wealth maximization: wealth maximization means the objective of
a firm should be to maximize its value or wealth, or value of a firm is
represented by the market price of its common stock.
75. Functions of financial
manager:
Investment decision
Dividend decision
Finance decision
Cash management decisions
Performance evaluation
Market impact analysis
76. Time value of money: the time value of money
means that worth of a rupee received today is different from the worth of a
rupee to be received in future.
77. Capital structure: it refers to the mix of sources from where
the long-term funds required in a business may be raised; in other words, it
refers to the proportion of debt, preference capital and equity capital.
78. Optimum capital structure: capital structure is
optimum when the firm has a combination of equity and debt so that the wealth
of the firm is maximum.
79. Wacc: it denotes weighted average
cost of capital. It is defined as the overall cost of capital computed by
reference to the proportion of each component of capital as weights.
80. Financial break even point: it denotes the level at
which a firm’s EBIT is just sufficient to cover interest and preference
dividend.
81. Capital budgeting: capital budgeting involves
the process of decision making with regard to investment in fixed assets. Or
decision making with regard to investment of money in long term projects.
82. Pay back period: payback period represents the time period required
for complete recovery of the initial investment in the project.
83. ARR: accounting or average rate
of return means the average annual yield on the project.
84. NPV: the net present value of an
investment proposal is defined as the sum of the present values of all future
cash in flows less the sum of the present values of all cash out flows
associated with the proposal.
85. Profitability index: where different investment
proposal each involving different initial investments and cash inflows are to
be compared.
86. IRR: internal rate of return is
the rate at which the sum total of discounted cash inflows equals the
discounted cash out flow.
87. Treasury management: it means it is defined as the efficient management
of liquidity and financial risk in business.
88. Concentration banking: it means identify locations
or places where customers are placed and open a local bank a/c in each of these
locations and open local collection centre.
89. Marketable securities: surplus cash can be
invested in short term instruments in order to earn interest.
90. Ageing schedule: in a ageing schedule the
receivables are classified according to their age.
91. Maximum permissible bank finance (MPBF): it is the maximum amount that
banks can lend a borrower towards his working capital requirements.
92. Commercial paper: a cp is a short term
promissory note issued by a company, negotiable by endorsement and delivery,
issued at a discount on face value as may be determined by the issuing company.
93. Bridge finance: It refers to the loans taken by the company
normally from a commercial banks for a short period pending disbursement of
loans sanctioned by the financial institutions.
94. Venture capital: It refers to the financing of high risk ventures promoted by new
qualified entrepreneurs who require funds to give shape to their ideas.
95. Debt securitization: It is a mode of financing, where in securities
are issued on the basis of a package of assets (called asset pool).
96. Lease financing: Leasing is a contract where one party (owner)
purchases assets and permits its views by another party (lessee) over a
specified period
97. Trade Credit: It represents credit granted by suppliers of
goods, in the normal course of business.
98. Over draft: Under this facility a fixed limit is granted
within which the borrower allowed to overdraw from his account.
99. Cash credit: It is an arrangement under which a customer
is allowed an advance up to certain limit against credit granted by bank.
100. Clean overdraft: It refers to an advance by way of overdraft
facility, but not back by any tangible security.
101. Share capital: The sum total of the nominal
value of the shares of a company is called share capital.
102. Funds flow statement: It is the statement deals with the financial resources for running
business activities. It explains how the
funds obtained and how they used.
103. Sources of funds: There are two sources of funds Internal
sources and external sources.
Internal source: Funds from operations is
the only internal sources of funds and some important points add to it they do
not result in the outflow of funds
(a)Depreciation on fixed assets (b) Preliminary expenses or goodwill
written off, Loss on sale of fixed assets
Deduct the following items
as they do not increase the funds:
Profit on sale of fixed
assets, profit on revaluation of fixed assets
External sources: (a) Funds from long term
loans (b) Sale of fixed assets (c) Funds from increase in share capital
104. Application of funds: (a) Purchase of fixed assets
(b) Payment of dividend (c)Payment of tax liability (d) Payment of fixed
liability
105. ICD (Inter corporate
deposits): Companies can borrow funds for a short period. For example 6 months or
less from another company which have surplus liquidity. Such deposits made by one company in another
company are called ICD.
106. Certificate of deposits: The CD
is a document of title similar to a fixed deposit receipt issued by banks there
is no prescribed interest rate on such CDs it is based on the prevailing market
conditions.
107. Public deposits: It is very important source of short term and
medium term finance. The company can
accept PD from members of the public and shareholders. It has the maturity period of 6 months to 3
years.
108.Euro issues: The euro issues means that the issues is
listed on a European stock Exchange. The
subscription can come from any part of the world except India.
109.GDR (Global depository
receipts): A depository receipt is basically a
negotiable certificate , dominated in us dollars that represents a non-US
company publicly traded in local currency equity shares.
110. ADR (American depository
receipts): Depository receipt issued by
a company in the USA are known as ADRs.
Such receipts are to be issued in accordance with the provisions
stipulated by the securities Exchange commission (SEC) of USA like SEBI in
India.
111.Commercial banks: Commercial banks extend foreign currency loans
for international operations, just like rupee loans. The banks also provided overdraft.
112.Development banks: It offers long-term and medium term loans
including foreign currency loans
113.International agencies: International agencies like the
IFC,IBRD,ADB,IMF etc. provide indirect assistance for obtaining foreign
currency.
114.
Seed capital assistance: The seed capital assistance
scheme is desired by the IDBI for professionally or technically qualified
entrepreneurs and persons possessing relevant experience and skills and
entrepreneur traits.
115. Unsecured l0ans: It constitutes a significant part of long-term
finance available to an enterprise.
116. Cash flow statement: It is a statement depicting
change in cash position from one period to another.
117.Sources of cash: Internal
sources-(a)Depreciation (b)Amortization (c)Loss on sale of fixed assets
(d)Gains from sale of fixed assets (e) Creation of reserves External
sources-(a)Issue of new shares (b)Raising long term loans (c)Short-term
borrowings (d)Sale of fixed assets, investments
118. Application of cash: (a) Purchase of fixed assets
(b) Payment of long-term loans (c) Decrease in deferred payment liabilities (d)
Payment of tax, dividend (e) Decrease in unsecured loans and deposits
119. Budget: It is a detailed plan of operations for some
specific future period. It is an
estimate prepared in advance of the period to which it applies.
120. Budgetary control: It is the system of management control and
accounting in which all operations are forecasted and so for as possible
planned ahead, and the actual results compared with the forecasted and planned
ones.
121. Cash budget: It is a summary statement of firm’s expected cash inflow and outflow
over a specified time period.
122. Master budget: A summary of budget schedules in capsule form
made for the purpose of presenting in one report the highlights of the budget
forecast.
123. Fixed budget: It is a budget which is designed to remain
unchanged irrespective of the level of activity actually attained.
124. Zero- base- budgeting: It is a management tool which provides a
systematic method for evaluating all operations and programmes, current of new
allows for budget reductions and expansions in a rational manner and allows
reallocation of source from low to high priority programs.
125. Goodwill: The present value of firm’s anticipated excess
earnings.
126. BRS: It is a statement reconciling
the balance as shown by the bank pass book and balance shown by the cash book.
127. Objective of BRS: The objective of preparing such a statement is to know the causes of
difference between the two balances and pass necessary correcting or adjusting entries in the books of the firm.
128. Responsibilities of accounting: It is a system of control by delegating and locating
the responsibilities for costs.
129. Profit centre: A centre whose performance is measured in
terms of both the expense incurs and revenue it earns.
130. Cost centre: A location, person or item of equipment for
which cost may be ascertained and used for the purpose of cost control.
131. Cost: The amount of expenditure
incurred on to a given thing.
132. Cost accounting: It is thus concerned with recording,
classifying, and summarizing costs for determination of costs of products or
services planning, controlling and reducing such costs and furnishing of
information management for decision making.
133. Elements of cost: (A) Material (B) Labour (C) Expenses (D)
Overheads
134. Components of total costs: (A) Prime cost (B) Factory cost (C)Total cost
of production (D) Total c0st
135. Prime cost: It consists of direct material direct labour
and direct expenses. It is also known as
basic or first or flat cost.
136. Factory cost: It comprises prime cost, in addition factory
overheads which include cost of indirect material indirect labour and indirect
expenses incurred in factory. This cost is also known as works cost or
production cost or manufacturing cost.
137. Cost of production: In office and administration overheads are
added to factory cost, office cost is arrived at.
138. Total cost: Selling and distribution overheads are added
to total cost of production to get the total cost or cost of sales.
139. Cost unit: A unit of quantity of a product, service or
time in relation to which costs may be ascertained or expressed.
140.Methods of costing: (A)Job costing (B)Contract costing (C)Process
costing (D)Operation costing (E)Operating costing (F)Unit costing (G)Batch
costing.
141. Techniques of costing: (a) marginal costing (b) direct costing (c)
absorption costing (d) uniform costing.
142. Standard costing: standard costing is a system under which the cost of the product is
determined in advance on certain predetermined standards.
143. Marginal costing: it is a technique of
costing in which allocation of expenditure to production is restricted to those
expenses which arise as a result of production, i.e., materials, labour, and
direct expenses and variable overheads.
144. Derivative: derivative is product whose
value is derived from the value of one
or more basic variables of underlying asset.
145. Forwards: a forward contract is customized
contracts between two entities were settlement takes place on a specific date
in the future at today’s pre agreed price.
146. Futures: a future contract is an
agreement between two parties to buy or sell an asset at a certain time in the
future at a certain price. Future
contracts are standardized exchange traded contracts.
147. Options: an option gives the holder of the option the right to do some thing.
The option holder option may exercise or not.
148. Call option: a call option gives the
holder the right but not the obligation to buy an asset by a certain date for a
certain price.
149. Put option: a put option gives the
holder the right but not obligation to sell an asset by a certain date for a
certain price.
150. Option price: option price is the price which the option buyer pays to the option
seller. It is also referred to as the option premium.
151. Expiration date: the date which is specified
in the option contract is called expiration date.
152. European option: it is the option at exercised only on expiration date it self.
153. Basis: basis means future price minus spot price.
154. Cost of carry: the relation between future
prices and spot prices can be summarized in terms of what is known as cost of
carry.
155.
Initial margin: the amount that must be deposited in the margin a/c at the time of
first entered into future contract is known as initial margin.
156 Maintenance margin: this is some what lower than initial margin.
157. Mark to market: in future market, at the
end of the each trading day, the margin a/c is adjusted to reflect the investors’
gains or loss depending upon the futures selling price. This is called mark to
market.
158. Baskets : basket options are options
on portfolio of underlying asset.
159. Swaps: swaps are private agreements between two parties to exchange cash
flows in the future according to a pre agreed formula.
160. Impact cost: impact cost is cost it is
measure of liquidity of the market. It reflects the costs faced when actually
trading in index.
161. Hedging: hedging means minimize the
risk.
162. Capital market: capital market is the
market it deals with the long term investment funds. It consists of two markets
1.primary market 2.secondary market.
163. Primary market: those companies which are
issuing new shares in this market. It is also called new issue market.
164. Secondary market: secondary market is the
market where shares buying and selling. In India secondary market is called
stock exchange.
165.
Arbitrage:
it means purchase and sale of securities in different markets in order to
profit from price discrepancies. In other words arbitrage is a way of reducing
risk of loss caused by price fluctuations of securities held in a portfolio.
166. Meaning of ratio: Ratios are relationships
expressed in mathematical terms between figures which are connected with each
other in same manner.
167. Activity ratio: it is a measure of the
level of activity attained over a period.
168. mutual fund : a mutual fund is a pool of
money, collected from investors, and is invested according to certain
investment objectives.
169. characteristics of
mutual fund :
·
Ownership of the MF is in the hands of the of the investors
·
MF managed by investment professionals
·
The value of portfolio is updated every day
170.advantage of MF to investors
:
- Portfolio diversification
- Professional management
- Reduction in risk
- Reduction of transaction casts
- Liquidity
- Convenience and flexibility
171.net asset value : the value of one unit of
investment is called as the Net Asset Value
172.open-ended fund : open ended funds means
investors can buy and sell units of fund, at NAV related prices at any time, directly from the fund this is
called open ended fund.
For ex; unit 64
173.close ended funds : close ended funds means it
is open for sale to investors for a specific period, after which further sales
are closed. Any further transaction for buying the units or repurchasing them,
happen, in the secondary markets.
174. dividend option : investors who choose a
dividend on their investments, will receive dividends from the MF, as when such
dividends are declared.
175.growth option : investors who do not
require periodic income distributions can be choose the growth option.
176.equity funds : equity funds are those that
invest pre-dominantly in equity shares of company.
177.types of equity funds :
- Simple equity funds
- Primary market funds
- Sectoral funds
- Index funds
178. sectoral funds : sectoral funds choose to invest in one or more chosen sectors of the
equity markets.
179.index funds :the fund manager takes a
view on companies that are expected to perform well, and invests in these
companies
.
180.debt funds : the debt funds are those
that are pre-dominantly invest in debt securities.
181. liquid funds : the debt funds invest
only in instruments with maturities less than one year.
182. gilt funds : gilt funds invests only in
securities that are issued by the GOVT. and therefore does not carry any credit risk.
183.balanced funds :funds that invest both in
debt and equity markets are called balanced funds.
184. sponsor : sponsor is the promoter of
the MF and appoints trustees, custodians and the AMC with prior approval of SEBI .
185. trustee : trustee is responsible to
the investors in the MF and appoint the
AMC for managing the investment
portfolio.
186. AMC : the AMC describes Asset
Management Company, it is the business face of the MF, as it manages all the affairs of the MF.
187. R & T Agents : the R&T agents are
responsible for the investor servicing functions, as they maintain the records
of investors in MF.
188. custodians : custodians are responsible
for the securities held in the mutual fund’s portfolio.
189. scheme take over : if an existing MF scheme is
taken over by the another AMC, it is called as scheme take over.
190.meaning of load: load is the factor that is
applied to the NAV of a scheme to arrive at the price.
192. market capitalization : market capitalization means
number of shares issued multiplied with market price per share.
193.price earning ratio : the ratio between the
share price and the post tax earnings of company is called as price earning
ratio.
194. dividend yield : the dividend paid out by the
company, is usually a percentage of the
face value of a share.
195. market risk : it refers to the risk which the investor is exposed to as a
result of adverse movements in the
interest rates. It also referred to as the interest rate risk.
196. Re-investment risk : it the risk which an
investor has to face as a result of a fall in the interest rates at the time of
reinvesting the interest income flows from the fixed income security.
197. call risk : call risk is associated
with bonds have an embedded call option in them. This option hives the issuer
the right to call back the bonds prior to maturity.
198. credit risk : credit risk refers to the
probability that a borrower could default on a commitment to repay debt or band loans
199.inflation risk : inflation risk reflects
the changes in the purchasing power of the cash flows resulting from the fixed
income security.
200.liquid risk : it is also called market
risk, it refers to the ease with which bonds could be traded in the market.
201.drawings : drawings denotes the money
withdrawn by the proprietor from the business for his personal use.
202.outstanding Income : Outstanding Income means
income which has become due during the accounting year but which has not so far
been received by the firm.
203.Outstanding Expenses : Outstanding Expenses
refer to those expenses which have become due during the accounting period for
which the Final Accounts have been prepared but have not yet been paid.
204. Closing stock: The term closing stock
means goods lying unsold with the businessman at the end of the accounting
year.
205.
Methods of depreciation :
1.Unirorm charge
methods :
a. Fixed installment
method
b .Depletion
method
c. Machine hour
rate method.
2. Declining charge
methods :
a. Diminishing
balance method
b.Sum of years
digits method
c. Double
declining method
3. Other methods :
a. Group depreciation method
b. Inventory system
of depreciation
c. Annuity method
d. Depreciation
fund method
e. Insurance policy
method.
206.Accrued
Income
: Accrued Income means income which has been earned by the business during the
accounting year but which has not yet become due and, therefore, has not been received.
207.
Gross profit ratio : it indicates the efficiency of the production/trading operations.
Formula : Gross profit X100
Net
sales
208.
Net profit ratio: it indicates net margin on
sales
Formula: Net profit X 100
Net
sales
209.
return on share holders funds : it indicates measures earning power of equity capital.
Formula : profits available for
Equity shareholders X 100
Average Equity Shareholders Funds
210.
Earning per Equity share (EPS) : it shows the amount of
earnings attributable to each equity share.
Formula : profits available for
Equity shareholders
Number of Equity shares
211.dividend
yield ratio : it shows the rate of return to shareholders in the form of dividends
based in the market price of the share
Formula : Dividend per share X 100
Market price per share
212.
price earning ratio : it a measure for determining
the value of a share. May also be used to measure the rate of return expected
by investors.
Formula : Market price of share
(MPS) X 100
Earning per share (EPS)
213.Current
ratio
: it measures short-term debt paying ability.
Formula : Current Assets
Current Liabilities
214.
Debt-Equity Ratio : it indicates the percentage of funds being financed through
borrowings; a measure of the extent of trading on equity.
Formula : Total Long-term Debt
Shareholders
funds
215.Fixed
Assets ratio : This ratio explains whether the firm has raised adequate long-term
funds to meet its fixed assets requirements.
Formula Fixed Assets
Long-term Funds
216 .
Quick Ratio : The ratio termed as ‘ liquidity ratio’. The ratio is ascertained y
comparing the liquid assets to current liabilities.
Formula : Liquid Assets
Current Liabilities
217.
Stock turnover Ratio : the ratio indicates whether investment in inventory in efficiently
used or not. It, therefore explains whether investment in inventory within
proper limits or not.
Formula : cost of goods sold
Average stock
218.
Debtors Turnover Ratio : the ratio the better it is, since it would indicate that debts are
being collected more promptly. The ration helps in cash budgeting since the
flow of cash from customers can be worked out on the basis of sales.
Formula : Credit sales
Average Accounts Receivable
219.Creditors
Turnover Ratio : it indicates the speed with which the payments for credit purchases
are made to the creditors.
Formula : Credit Purchases
Average Accounts Payable
220.
Working capital turnover ratio : it is also known as Working Capital Leverage Ratio. This ratio
indicates whether or not working capital has been effectively utilized in
making sales.
Formula : Net Sales
Working Capital
221.Fixed
Assets Turnover ratio : This ratio indicates the extent to which the investments in fixed
assets contributes towards sales.
Formula : Net Sales
Fixed
Assets
222
.Pay-out Ratio : This ratio indicates what proportion of earning per share has been
used for paying dividend.
Formula : Dividend
per Equity Share X 100
Earning per Equity share
223.Overall
Profitability Ratio : It is also called as “ Return on Investment” (ROI) or Return on
Capital Employed (ROCE) . It indicates
the percentage of return on the total capital employed in the business.
Formula : Operating profit X 100
Capital employed
The term capital employed has been given different
meanings
a. sum total of all assets
whether fixed or current
b. sum total of fixed assets,
c. sum total of long-term funds
employed in the business, i.e.,
share capital +reserves &surplus +long term loans –(non business
assets + fictitious assets).
Operating
profit
means ‘profit before interest and tax’
224 .
Fixed Interest Cover ratio : the ratio is very important from the lender’s point of view. It
indicates whether the business would earn sufficient profits to pay
periodically the interest charges.
Formula : Income
before interest and Tax
Interest Charges
225 .
Fixed Dividend Cover ratio : This ratio is important for
preference shareholders entitled to get dividend at a fixed rate in priority to
other shareholders.
Formula : Net Profit after Interest and Tax
Preference Dividend
226.
Debt Service Coverage ratio : This ratio is explained ability of a company to make payment of
principal amounts also on time.
Formula : Net profit before interest and tax
Interest + Principal payment installment
1- Tax rate
227.
Proprietary ratio : It is a variant of debt-equity ratio . It establishes relationship
between the proprietor’s funds and the total tangible assets.
Formula : Shareholders funds
Total
tangible assets
228.Difference between joint
venture and partner ship :
Ø In joint venture the
business is carried on without using a firm name,
In the partnership, the business
is carried on under a firm name.
Ø In the joint venture, the
business transactions are recorded under cash system
In the partnership, the
business transactions are recorded under mercantile system.
Ø In the joint venture, profit
and loss is ascertained on completion of the venture
In the partner ship ,
profit and loss is ascertained at the end of each year.
Ø In the joint venture, it is
confined to a particular operation and it is temporary.
In the partnership, it is
confined to a particular operation and it is permanent
.
229.Meaning
of Working capital
:
The funds available for
conducting day to day operations of an enterprise. Also represented by the excess of current assets
over current liabilities .
230.concepts
of accounting :
- Business entity concepts: - According to this concept, the business is treated as a separate entity distinct from its owners and others.
- Going concern concept: - According to this concept, it is assumed that a business has a reasonable expectation of continuing business at a profit for an indefinite period of time.
- Money measurement concept: - This concept says that the accounting records only those transactions which can be expressed in terms of money only.
- Cost concept:-According to this concept, an asset is recorded in the books at the price paid to acquire it and that this cost is the basis for all subsequent accounting for the asset.
- Dual aspect concept: - In every transaction, there will be two aspects – the receiving aspect and the giving aspect; both are recorded by debiting one accounts and crediting another account. This is called double entry.
- Accounting period concept: - It means the final accounts must be prepared on a periodic basis. Normally accounting period adopted is one year, more than this period reduces the utility of accounting data.
- Realization concept: - According to this concepts, revenue is considered as being earned on the data which it is realized, i.e., the date when the property in goods passes the buyer and he become legally liable to pay.
- Materiality concepts: - It is a one of the accounting principle, as per only important information will be taken, and un important information will be ignored in the preparation of the financial statement.
- Matching concepts: - The cost or expenses of a business of a particular period are compared with the revenue of the period in order to ascertain the net profit and loss.
- Accrual concept: - The profit arises only when there is an increase in owners capital, which is a result of excess of revenue over expenses and loss.
231. Financial
analysis:
The process of
interpreting the past, present, and future financial condition of a company.
232.
Income statement : An accounting statement which shows the level of revenues, expenses
and profit occurring for a given accounting period.
233.Annual
report
: The report issued annually by a company, to its share holders. it containing
financial statement like, trading and profit & lose account and balance
sheet.
234.
Bankrupt
: A statement in which a firm is unable
to meets its obligations and hence, it is assets are surrendered to court for
administration
235 .
Lease
: Lease is a contract between to parties under the contract, the owner of the
asset gives the right to use the asset to the user over an agreed period of the
time for a consideration
236.Opportunity
cost : The
cost associated with not doing something.
237.
Budgeting
: The term budgeting is used for preparing budgets and other producer for
planning,co-ordination,and control of business enterprise
.
238.Capital : The term capital refers
to the total investment of company in money, tangible and intangible assets. It
is the total wealth of a company.
239.Capitalization : It is the sum of the par
value of stocks and bonds out standings.
240.
Over capitalization : When a business is unable to earn fair rate on its outstanding
securities.
241.
Under capitalization : When a business is able to earn fair rate or over rate on it is
outstanding securities.
242.
Capital gearing : The term capital gearing refers to the relationship between equity
and long term debt.
243.Cost
of capital
: It means the minimum rate of return expected by its investment.
244.Cash
dividend
: The payment of dividend in cash
245.Define
the term accrual : Recognition of revenues and costs as they are earned or incurred .
it includes recognition of transaction relating to assets and liabilities as
they occur irrespective of the actual receipts or payments.
245.
accrued expenses : An expense which has been incurred in an accounting period but for which
no enforceable claim has become due in what period against the enterprises.
246.Accrued
revenue
: Revenue which has been earned is an earned is an accounting period but in
respect of which no enforceable claim has become due to in that period by the enterprise.
247.Accrued
liability
: A developing but not yet enforceable claim by an another person which
accumulates with the passage of time or the receipt of service or otherwise. it
may rise from the purchase of services which at the date of accounting have
been only partly performed and are not yet billable.
248.Convention
of Full disclosure : According to this convention, all accounting statements should be
honestly prepared and to that end full disclosure of all significant
information will be made.
249.Convention
of consistency : According to this convention it is essential that accounting
practices and methods remain unchanged from one year to another.
250.Define
the term preliminary expenses : Expenditure relating to the formation of an enterprise. There
include legal accounting and share issue expenses incurred for formation of the
enterprise.
251.Meaning
of Charge
: charge means it is a obligation to secure an indebt ness. It may be fixed
charge and floating charge.
252.Appropriation : It is application of
profit towards Reserves and Dividends.
253.Absorption
costing
: A method where by the cost is determine so as to include the appropriate
share of both variable and fixed costs.
254.Marginal
Cost :
Marginal cost is the additional cost to produce an additional unit of a
product. It is also called variable cost.
255.
What are the ex-ordinary items in the P&L a/c : The transaction which are not
related to the business is termed as ex-ordinary transactions or ex-ordinary
items. Egg:- profit or losses on the sale of fixed assets, interest received
from other company investments, profit or loss on foreign exchange, unexpected
dividend received.
256 .
Share premium : The excess of issue of price of shares over their face value. It
will be showed with the allotment entry
in the journal, it will be adjusted in the balance sheet on the liabilities
side under the head of “reserves & surplus”.
257.Accumulated
Depreciation : The total to date of the periodic depreciation charges on
depreciable assets.
258.Investment : Expenditure on assets
held to earn interest, income, profit or other benefits.
259.Capital : Generally refers to the
amount invested in an enterprise by its owner. Ex; paid up share capital in
corporate enterprise.
260.
Capital Work In Progress : Expenditure on capital assets which are in the process of
construction as completion.
261.
Convertible Debenture : A debenture which gives the holder a right to conversion wholly or
partly in shares in accordance with term of issues.
262.Redeemable
Preference Share : The preference share that is repayable either after a fixed (or)
determinable period (or) at any time dividend by the management.
263.
Cumulative preference shares : A class of preference shares entitled to payment of cumulates
dividends. Preference shares are always deemed to be cumulative unless they are
expressly made non-cumulative preference shares.
264.Debenture
redemption reserve : A reserve created for the redemption of debentures at a future date.
265.
Cumulative dividend : A dividend payable as cumulative preference shares which it unpaid
cumulates as a claim against the earnings of a corporate before any
distribution is made to the other shareholders.
266.
Dividend Equalization reserve : A reserve created to maintain the rate of dividend in future years.
267.
Opening Stock: The term ‘opening stock’ means goods lying unsold with the businessman
in the beginning of the accounting year. This is shown on the debit side of the
trading account.
268.Closing
Stock :
The term ‘Closing Stock’ includes goods lying unsold with the businessman at
the end of the accounting year. The amount of closing stock is shown on the
credit side of the trading account and as an asset in the balance sheet.
269.Valuation
of closing stock : The closing stock is valued on the basis of “Cost or Market price
whichever is less” principle.
272.
Contingency : A condition (or) situation the ultimate out come of which gain or loss
will be known as determined only as the occurrence or non occurrence of one or
more uncertain future events.
273.Contingent
Asset :
An asset the existence ownership or value of which may be known or determined
only on the occurrence or non occurrence of one more uncertain future events.
274.
Contingent liability : An obligation to an existing condition or situation which may arise
in future depending on the occurrence of one or more uncertain future events.
275.
Deficiency
: the excess of liabilities over assets of an enterprise at a given date is
called deficiency.
276.Deficit : The debit balance in the
profit and loss a/c is called deficit.
277.Surplus
: Credit
balance in the profit & loss statement after providing for proposed
appropriation & dividend , reserves.
278.Appropriation
Assets
: An account sometimes included as a separate section of the profit and loss
statement showing application of profits towards dividends, reserves.
279.
Capital redemption reserve : A reserve created on redemption of the average cost:- the cost of an
item at a point of time as determined by applying an average of the cost of all
items of the same nature over a period. When weights are also applied in the
computation it is termed as weight average cost.
280.Floating
Change
: Assume change on some or all assets of an enterprise which are not attached
to specific assets and are given as security against debt.
281.
Difference
between Funds flow and Cash flow statement :
Ø A Cash flow statement is
concerned only with the change in cash position while a funds flow analysis is
concerned with change in working capital position between two balance sheet
dates.
Ø A cash flow statement is
merely a record of cash receipts and disbursements. While studying the
short-term solvency of a business one is interested not only in cash balance
but also in the assets which are easily convertible into cash.
282. Difference
Between the Funds flow and Income statement :
Ø A funds flow statement deals
with the financial resource required for running the business activities. It
explains how were the funds obtained and how were they used,
Whereas an income statement discloses the results of the business
activities, i.e., how much has been
earned and how it has been spent.
Ø A funds flow statement
matches the “funds raised” and “funds applied” during a particular period. The
source and application of funds may be of capital as well as of revenue nature.
An
income statement matches the incomes of a period with the expenditure of that period,
which are both of a revenue nature.
Definition of the terms of Costing for interview preparation:
(i) Responsibility Accounting: Responsibility accounting refers to the principles, practices and procedures under which costs and revenues are classified according to the responsibility centres that are responsible for incurring costs and generating the revenue.
(ii) Budget: Budget is a qualified plan of action relating to a given period of time. It is a comprehensive and co – ordinated plan of action, expressed in monetary terms, for the operations and utilisation of resources of an organisation for some specified period in the future.
(iii) Standard cost: Standard cost is a scientifically predetermined cost, which is arrived at after assuming a particular level of efficiency in utilisation of material, men & other resources. Standard cost is like a model, which provides basis of comparison of actual cost.
(iv) Enterprise Resource Planning: Enterprise Resource Planning (ERP) is the latest high and solution that information technology has lent to Business application. The ERP seeks to streamline and integrate operation processes and information flows in the company to synergies the resources of an organisation namely men, materials money and machine through information.
(v) Cost Reduction: Cost reduction represents achievement of real and permanent reduction in the unit cost of goods/ services without impairing suitability for the for intended.
(i) Target costing: Target costing is the establishment of a maximum target cost for a product by working backward from an estimated market price. Often it is the long run cost taking into account learning and other long run factors.
(ii) MRP: Material requirement planning (MRP) is a technique which aims at the ensure that material resources – raw material, bought – in – components and in – house subassemblies are made available just before they are needed by the next stage of production of dispatch.
(iii) Management by objectives (MBO): Management by Objectives involves systematic formal goal setting and review process, which is conducted jointly by managers and subordinates throughout various levels of an organisation.
(iv) Cost Driver: Cost Driver is the underlying factor that causes incurrence of cost relating to the activity. It is used in the context of Activity Based Costing (ABC).
(v) TQM: Total Quality Management (TQM) is defined as continuous improvement in quality, productivity and effectiveness obtained by establishing management responsibility for process as well as output. It is the application of quality principles to all of the organizations Endeavour to satisfy customers.
(i) Balanced Scorecard approach: is an approach to the provision of information to Management to assists strategic policy formulation & achievement.
(ii) Margin of Safety: The excess of the actual sales revenue over the sales revenue at BEP is called the Margin of safety.
(iii) Total Quantity Management (TQM): is a term used to describe a situation where all business functions are involved in a process of continuous quality improvement.
(iv) Activity Based Costing (ABC): is a product costing technique, which attributes overhead costs to products on an activity basis.
(v) Basic Theorem in LP: States that for a system of ‘m’ equations and ‘n’ variables (where n>m), a solution in which at least (n – m) of the variables have value of zero, a vertex exists. This solution is called the basic solution.
(i) Benchmark: General rule of thumb specifying appropriate levels for financial and cost rations.
(ii) Cost of Capital: What a firm must pay to acquire more capital, whether or not it actually has to acquire more capital to take on a project.
(iii) Decision Model: Any method for making a choice sometimes requiring labor rate quantitative procedures.
(iv) Investment Centre: A responsibility centre whose success is measured not only by its income but also by relating that income to its invested capital as in a ratio of income to the value of the capital employed.
(v) Product Life Cycle: The various stages through the product passes, from conception and development through introduction into the market through maturity and finally withdrawal from the market.
i) Absorption Costing: A costing approach that considers all factory overhead, both variable and fixed, to be product cost that become an expenses in the form of manufacturing cost of goods sold only as sales occur.
ii) Back flush costing: An accounting system that applies cost to products only when the production is complete.
iii) Capacity cost: The fixed cost of being able to achieve a desired level of production or to provide a desired level of service while maintaining products or service attributes, such as quality.
iv) High-Low method of costing: A simple method for measuring a linear cost function from past cost data, focusing on the highest activity and lowest activity points and fitting a line through these two points.
v) Responsibility Accounting: Identifying what parts of the organization have primary responsibility for each objective, developing measures of achievement of objectives, and creating reports of these measures by organization subunit or responsibility centre.
(i) Goal Congruence: A condition where employees, working in their own personal interests make decisions that help meet the overall goals of the organization.
(ii) Break Even point: The level of sales at which revenue equals expenses and net income is zero.
(iii) Incremental Effect: The change in total results such as revenue, expenses or income, under a new condition in comparison with some given or known condition.
(iv) Activity Based Accounting: A system that accumulates overhead costs for each of the activities of an organization and then assigns the cost of activities to the product, services and other cost objects that caused that activity.
(v) Target Costing: A strategy in which companies first determine the price at which they can sell a new product or service and then design a product or service that can be produced at a low enough cost to provide an adequate profit margin.
(i) TQM: TQM defined as continuous improvement in quality, productivity and effectiveness obtained by establishing management responsibility for process as well as output. It is the application of quality principles to all of the organization endeavor to satisfy customers.
(ii) Slack variable: A variable which is added to convert an in equation to an equation. It is an idle or unused resource represented by a constraint.
(iii) ERP: ERP seek to streamline and integrate operation processes and information flows to synergize the resources of an organization namely, men, material, money and machine through information.
(iv) Benchmarking:It is defined as the continuous process of measuring the products/Services and business practices of a company against the toughest competitors or industry leaders. It is a standard of excellence or achievement against which performance must be measured or judged.
(v) Activity based budgeting:ABC assigns the resource expenses to activities and then uses activity cost drivers to assign activity cost to cost objects but ABB is the reverse of this process. Cost objects are the starting point; their budgeted output determines the necessary activities, which are then used to estimate the resources that are required for budget period.
(i) Backflush Costing: Backflush Costing is an accounting system that applies cost to products only when the production is complete.
(ii) Value-Added Activities (VA): The Value-added activities are those activities which are necessary for the performance of the process. Such activities represent work that is valued by the external or internal customer.
(iii) Value Engineering: Value Engineering is a Systematic inter-disciplinary examination of factors affecting the cost of a product or service, in order to devise means of achieving the specified purpose at the required standard of quality and reliability at the target cost.
(iv) Cost Driver: Cost Driver is the underlying factor that cause incurrence of cost relating to the activity. It is used in the context of Activity Based Costing (ABC).
(v) Balance Score Card: Balance Score Card is a set of financial and non-financial measures relating to a Company’s critical success factors. It is an approach which provides information to management to assist in strategic policy formulation and achievement.
(i) Perfection Standards: Expression for the most efficient performance possible under the best conceivable conditions, using existing specifications and equipments.
(ii) Capacity Cost: The fixed cost of being able to achieve a desired level of production or to provide a desired level of service while maintaining product or service attributes, such as quality.
(iii) Cross Sectional comparison: comparison of a company’s financial and cost rations with ratios of other companies or with industry averages for the same period.
(iv) Financial Planning Model: Mathematical model of the master budget that can react to any set of assumptions about sales, costs or product mix.
(v) Economic Value added (EVA): Accounting profit minus opportunity cost.
FOR MORE:
FOR MORE:
ICWA:Interview
Preparation
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●► Tips for Salary Negotiation at Interview
Salary negotiation is an important part of any final job interview, from both the interviewer and interviewee’s point of view. Salary has to be negotiated in such a way, that both the parties remain benefited. But often poor negotiation skill of the interviewee can spoil the entire process and result into unsatisfactory output. Don’t let your poor negotiation spoil your future. Here are some tips for you.
Don’t rush towards the negotiation process
Undoubtedly salary is one of the main pulling factors behind job switching. Being tempted by better salary we often change jobs. And that’s a common interest for both you and the interviewer; since the interviewer has to pay you. That’s an obvious question which may crop up at any part of the interview process. But don’t rush towards the salary discussion. When asked you may quote your expected salary or say it can be worked out later.
Know your value first
To ask for a reasonable salary, first you need to find your own market value. Judge your value in terms of logical perception of your knowledge, experience, skills and expertise, achievements, training, brand association and educational qualification.
Organization’s pay structure
Some organizations may have their own pay structure as per the candidates’ educational levels. Defined salary structures are at times made flexible, depending on candidate’s exclusive skills or extra-ordinary caliber. Know these pay structures before negotiating salary.
Exclusive position
In case your job position is quite unique and exclusive or you are the only one who could get through the interview process you can call for a premium amount of salary. As for example, if the concerned company keeps only one brand manager and you have been selected as the one, you can ask for a good salary package.
Industry rate
Know the industry rate first. Know how much other companies in the same industry are paying to its employees, at similar level like you. Knowing the industry rate will help you in the negotiation process to put forth a logical demand of salary.
Put your greed aside
Don’t get too greedy about money. A good company can’t be missed out for a few extra bucks. If everything is fine and you decide to join, don’t let the greed come in between. If you are getting a decent package, join it. Later on with time as you build good rapport and prove your skills salary hike won’t be a problem for you. Consider the entire package, not just winning negotiation. Too tall demand of yours may make the interviewer find you unreasonable or money minded. So be fair, gentle and not too pushy.
Let a good negotiation bring you good luck and the dream job.
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TYPES OF INTERVIEWS
Employing a new candidate for a company is very difficult for the interviewer. Because in this job market competitors are increased and new interview methods are introduced. There are many types of interviews. If you attended any interview you can realize that you had faced the given below interview types.
1. Stress Interview
2. Screening Interview
3. One-On-One Interview
4. Lunch Interview
5. Committee Interview
6. Group Interview
7. Telephone Interview
8. Informational Interview
9. The General/Structured Interview
1. Stress Interview :---
Stress interviews are used to see how the jobseeker handle himself. You may be sarcastic or argumentative, or may keep him waiting. You may also lapse into silence at some point during the questioning, this is used as an attempt to unnerve the jobseeker.
2. Screening Interview :---
Typically this is the first step a company takes after the resumes have been scrutinized. The purpose of this meeting is to assess the skills and personality traits of the potential candidates. The objective ultimately is to "screen out" those applicants the interviewer feels should not be hired due to lack of skills or bad first impressions. The interviewer must also "screen in" those candidates she/he feels would make a valuable contribution to the company. Your job during this preliminary meeting is to convince this person you are worthy to take the next step.
3. One-On-One Interview :---
In a one-on-one interview, it has been established that the jobseeker has the skills and education necessary for the position. You want to see if the jobseeker will fit in with the company, and how his/her skills complement the rest of the department. In a one-on-one interview the jobseeker's goal is to establish rapport with the interviewer and to show that his/her qualifications will benefit the company.
4. Lunch Interview :---
The same rules apply in lunch interviews as in those held at the office. The setting may be more casual, but it is a business lunch and the jobseeker has to be watched carefully. The jobseeker must use the lunch interview to develop common ground with your interviewer.
5.Committee Interview----
Committee interviews are a common practice. Jobseeker will have to face several members of the company who have a say in whether he/she is hired. In some committee interviews, you can ask the jobseeker to demonstrate his/her problem-solving skills. The committee will outline a situation and ask him/her to formulate a plan that deals with the problem. The interviewers are looking for how the jobseeker apply his/her knowledge and skills to a real-life situation.
6.Group Interview----
A group interview is usually designed to uncover the leadership potential of prospective managers and employees who will be dealing with the public. The front-runner candidates are gathered together in an informal, discussion-type interview. A subject is introduced and the interviewer will start off the discussion. The goal of the group interview is to see how the jobseeker interact with others and how use him/her knowledge and reasoning powers to win others over.
7.Telephone Interview :---
Telephone interviews are merely screening interviews meant to eliminate poorly qualified candidates so that only a few are left for personal interviews. The jobseeker's mission in this interview is to be invited for a personal face-to-face interview.
8.Informational Interview----
Typically this is an interview set up at the jobseeker's request with a Human Resources Manager or a departmental supervisor in the career field he/she is interested in. The purpose of this interview is to help the jobseeker find out more about a particular career, position or company. He/she is seeking information from these people in hopes that they might refer him/her to someone else in their company or to somebody they may know outside their company who could use your skills.
9.The General/Structured Interview----
Frequently the Screening Interview is combined with the General Interview due to time constraints many companies have during the hiring process. Often the jobseeker will meet with the supervisor over the position for which he/she is applying. During this interview he/she will be discussing the specifics of the position, the company and industry.
===============
Part time job advantages
Learning While Working
part time job advantages
Exploring other Opportunities
Aiming to go Full-time
Learning While Working
Working part-time will give you more time for other things. You could go home after work and enjoy more time in TV, have fun in other extra-curricular activities or you could go back to school for graduate studies.
part time job advantages
The first option is ok if you do not have a dream, but it is highly recommended to get yourself involved in other activities or getting a masters degree. You should count yourself lucky since you have more time to do other thing while having a good source of funds.
Exploring other Opportunities
There are college graduates who opted to have a part-time job since they have to take care of a business. If you have landed on a part-time job, maybe you should also consider starting a small business in your area. There are many businesses that you could start in no time at all with little to no start-up cost. This will increase your source of income and might even improve overtime.
There are also online jobs that you can do in your free time which could also become profitable. Just make sure you are not scammed when doing online work so that your efforts and resources will not go to waste.
Aiming to go Full-time
If you were hired as a part-time employee in a good company, do not let this chance slip in front of you. Be sure to work really hard and show that you can contribute more to the company if you are hired as a full-time employee.
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The Importance of corporate uniform
As part of the business work force, we are obliged to follow the work dress code set by the company we work with. Dress code is the standard set by the company to provide their employees guidance regarding what is suitable and appropriate to wear to work. Each company has developed their own work dress code and how formal or casual it is depends on how much interaction the employees have with customers and clients. Companies may even adapt different dress codes for those with employees in contact with customers while others are not. Employees with no interaction or few interactions with customers or clients have a more casual dress code. There are also instances that some companies have corporate uniforms that are more formal for certain days, like Mondays to Thursdays, and a business casual on a Friday.
Dress code makes it easier for employees to appear professional and reliable. Not only does it create the right impression to those who can see but it also creates the discipline for all employees. In a corporate uniforms, where you have to wear a business shirt and slacks on men and skirts on women, one has a tendency to be more formal or conservative, as befitting what they wear. This is very important because employers expect their employees to conduct themselves appropriately especially when their corporate uniforms bear their company name and logo. On the other hand, employees feel their demeanor changing befitting their company’s image.
There are times though that some company uniforms are not so comfortable and thus professional image is not thoroughly achieved. Creating a positive image does not simply rely on the looks of the corporate uniform; it should be comfortable so that employees can fulfill their tasks in good spirit. That is one thing that employers should consider when designing the dress code. On the other hand, employees should avoid mistakes that could demean their company. Make sure that the business clothing is clean, properly ironed, and wrinkle-free to look professional. Mind that the length of skirts is not too short, the heels of the shoes are not too high to be uncomfortable, and business shirts and tops are not revealing. Always remember that how people see one employee determines the image of the company. So care should both be given by employers and employees alike if they want to create a positive and professional image through their company uniforms.
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Body language during a job interview
The rules as regards applying for jobs have been subject to enormous changes lately. In the past, people preferred a hand-written application letter. It is becoming more and more common these days to find a vacancy on the Internet, and to apply for it via the Internet as well. Quite often it is sufficient to place your C.V. on the web. Because of this, the application procedure often goes quicker, and now you can find yourself invited for a job interview before you know it. You can find information on the Internet about how to apply for jobs.
Information can be found about how to write your application letter, the clothes that you should wear and how to carry out the interview itself. The importance of body language is often mentioned, but doesn't always get the attention it deserves. After all, before a word has even been spoken, your body language will have already given people their first impression of you.Just the same as when you are giving a presentation, many people often regard their hands as obstacles during a job interview rather than a useful means of communication.
That is why people often ask what to do with their hands. In a difficult situation we are often inclined to fold our arms across our body. This helps to give us a more secure feeling. During a job interview it is better not to do this, because folding your arms can be interpreted as a defensive move. It is better to let your hands lie loosely on your lap or place them on the armrests of your chair. From these positions it's also easy to support your words with hand gestures.
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