GLOSSARY

Business & Tax Glossary

Your complete A-Z reference guide to business, tax, and compliance terminology

Browse Glossary by Letter (3 per letter)

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A (10 total)

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Accounts Payable

Short-term obligations owed to suppliers for goods or services received.

Accounts Receivable

Amounts owed to a business by customers for credit sales.

Accrual Basis

Accounting method that records income and expenses when they are earned or incurred, not when cash moves.

B (10 total)

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B2B Invoice

Invoice issued for a sale where the buyer is a registered business.

B2C Invoice

Invoice issued for a sale where the buyer is an end consumer.

Bad Debt

Receivable that is unlikely to be collected and is written off.

C (10 total)

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CSR (Corporate Social Responsibility)

Mandatory corporate spending on social initiatives for eligible companies.

Capital Gains

Profit earned from the sale of a capital asset.

Cash Flow

Movement of cash in and out of a business over a period.

D (10 total)

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Debit Note

Document issued to increase the value of a prior invoice.

Deferred Tax

Tax accounting concept recognizing timing differences in income and expenses.

Depreciation

Systematic allocation of an asset’s cost over its useful life.

E (10 total)

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E-Invoice

Invoice generated through the GST e-invoicing system with a unique IRN.

E-Way Bill

Electronic document required for transportation of goods beyond set thresholds.

E-commerce Operator

Platform that facilitates supply of goods or services by other suppliers.

F (10 total)

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FIFO (First In, First Out)

Inventory method where oldest stock is sold or used first.

FSSAI License

Food safety registration required for food businesses in India.

Filing Fee

Government fee paid for statutory filings or applications.

G (10 total)

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GST

Goods and Services Tax applied on supply of goods and services in India.

GSTR-1

GST return for reporting outward supplies.

GSTR-3B

Summary GST return used to declare tax liability and ITC.

H (10 total)

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HR Compliance

Adherence to labor laws, payroll rules, and employee policies.

HSN Code

Harmonized System of Nomenclature for classifying goods under GST.

Head Office Expenses

Common costs incurred by head office allocated to branches.

I (10 total)

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IEC (Import Export Code)

Mandatory registration for businesses involved in import/export.

ITC Reversal

Reversal of input tax credit due to ineligible or proportionate use.

Income Tax

Direct tax on income earned by individuals and entities.

J (10 total)

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J-Curve

Investment pattern where returns are negative initially then improve.

Job Costing

Costing method that tracks costs for a specific job or project.

Job Work

Processing of goods by a job worker on behalf of a principal.

K (10 total)

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KYC

Know Your Customer process for verifying identity and compliance.

Kaizen

Continuous improvement approach focused on incremental changes.

Kanban

Visual workflow system used to manage and optimize processes.

L (10 total)

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LLP (Limited Liability Partnership)

Business structure combining partnership flexibility with limited liability.

Late Fee

Penalty charged for filing or payment after the due date.

Leave Encashment

Payment for unused leave days at the time of exit or year-end.

M (10 total)

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MCA

Ministry of Corporate Affairs responsible for corporate regulation in India.

MSME

Micro, Small and Medium Enterprises as classified by turnover and investment.

Management Audit

Evaluation of management performance and decision-making.

N (10 total)

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NOC (No Objection Certificate)

Written consent issued by an authority for a specific action.

NRE Account

Rupee account for NRIs to hold overseas income in India.

NRO Account

Rupee account for NRIs to manage income earned in India.

O (10 total)

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Onboarding

Process of integrating new employees or vendors into operations.

One Person Company (OPC)

Company type allowing single individual ownership with limited liability.

Operating Expenses (OPEX)

Regular expenses required to run day-to-day operations.

P (10 total)

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PAN

Permanent Account Number used for tax identification in India.

Partnership Deed

Legal agreement defining rights and duties of partners.

Payroll

Process of calculating and paying employee salaries and deductions.

Q (10 total)

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Qualified Institutional Buyer (QIB)

Investor category allowed to participate in certain capital market issues.

Qualified Opinion

Audit opinion indicating issues that are material but not pervasive.

Quality Assurance

Process-focused approach to prevent defects in services or products.

R (10 total)

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ROC (Registrar of Companies)

Authority that regulates companies and keeps their records.

Refund Voucher

Document issued when advance payment is refunded.

Registered Office

Official address of a company where statutory communications are sent.

S (10 total)

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SAC Code

Service Accounting Code used to classify services under GST.

Section 80C

Income tax provision allowing deductions for specified investments.

Self Assessment Tax

Tax paid by the taxpayer after computing own liability.

T (10 total)

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TAN

Tax Deduction and Collection Account Number for TDS/TCS filers.

TCS

Tax Collected at Source by sellers on specified transactions.

TDS

Tax Deducted at Source from payments such as salary, rent, or fees.

U (10 total)

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UAN

Universal Account Number for EPF members to track provident fund.

UDIN

Unique Document Identification Number for certified documents by CAs.

Udyam Registration

Online registration for MSMEs in India.

V (10 total)

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VAT

Value Added Tax applied on goods and services in some jurisdictions.

Valuation

Process of estimating the economic value of a business or asset.

Value Added Services

Additional services that enhance a core product or offering.

W (10 total)

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Wage Register

Record of employee wages, deductions, and payments.

Warehouse Receipt

Document proving storage of goods, often used for financing.

Warranty Provision

Estimated liability set aside for warranty claims.

X (10 total)

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X-Coupon

Bond sold without the right to receive the next coupon payment.

X-Dividend Date (Ex-Dividend)

Date after which a buyer is not entitled to the declared dividend.

X-Interest Date (Ex-Interest)

Date after which accrued interest does not pass to the buyer.

Y (10 total)

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Year of Assessment

Period in which income tax is assessed for a previous year’s income.

Year-end Adjustment

Accounting entries passed to reflect accurate year-end balances.

Year-end Closing

Process of finalizing accounts at the end of a financial year.

Z (10 total)

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Z-Score (Altman)

Model used to estimate the likelihood of business bankruptcy.

Zero Balance Account

Bank account that allows maintaining a minimum balance of zero.

Zero Coupon Bond

Bond issued at a discount with no periodic interest payments.

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