Finance Abbreviations MCQ questions and answers | GK Abbreviations

The Certified Payroll Professional (CPP) is a certification credential for experienced payroll professionals. To qualify for CPP certification, candidates at a minimum must have three years of payroll practice in the five years prior to taking the exam.

The assumed interest rate (AIR) is the rate of interest (or growth rate) selected by an insurance company. The assumed interest rate is provided to determine the value of an annuity contract and, therefore, the periodic income payment provided to the annuitant.

Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency. This measure provides insight into how much profit is being produced per dollar of sales. An increasing ROS indicates that a company is improving efficiency, while a decreasing ROS could signal impending financial troubles. ROS is closely related to a firm's operating profit margin.

Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.

Return on invested capital (ROIC) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital ratio gives a sense of how well a company is using its capital to generate profits.

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholder's equity. Because shareholder's equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a measure of a corporation's profitability in relation to stockholder's equity.

Return on capital employed is calculated by dividing net operating profit, or earnings before interest and taxes (EBIT), by capital employed. Another way to calculate it is by dividing earnings before interest and taxes by the difference between total assets and current liabilities.

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings.

Quarter-to-date (QTD) is a time interval that captures all relevant company activity that occurred between the beginning of the current quarter and the point at which the data was gathered later in the quarter. Quarter-to-date information is typically gathered in situations when the entire quarterly period has not yet ended, and it can allow management to see how the quarter is shaping up.

National Housing Bank (NHB), is the apex regulatory body for overall regulation and licensing of housing finance companies in India. It is under the jurisdiction of Ministry of Finance , Government of India. It was set up on 9 July 1988 under the National Housing Bank Act, 1987. NHB is the apex financial institution for housing. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.