Accounting and Finance Questions

NSF means - Not Sufficient Funds.

SLR Rate is the minimum amount or percentage of the deposits that a bank has to keep with the RBI in the form of money,gold or any other approved security. In simple terms it is the ratio between cash and some approved security.

There are three types of assets
1. Fixed assets     :
Those assets which will be used by the company for a long period of time.
a) Tangible assets: those assets which we can see and touch and exp Land & Buildings, Plant & Machinery,Furniture, fixtures and fittings
b) Intangible assets: Those assets which we can't see and touch like Goodwill, Patents, Copyrights, Trade Mark etc

2. Current assets  :
Those assets which can be easily converted into cash within one year like cash in hand, cash at bank, Bills receivable, stock etc

3. Fictitious assets:
its not the actual assets , its the expenditure occurred at the tine of commencement of firm ( capital expenditure )like preliminary expenses, discount on issue on debenture/shares, underwriting commission etc

Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

A Budget is a financial plan of expected cash inflows and outflows that a business generates.
It is generally a long-term statement involving ammual updates. It is best described as A formal statement of a company's future plans usually expressed in monetary terms.