Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is meant by a Debenture?

State the meaning of ‘Debentures issued as a collateral security’.

What is ‘Capital Reserve’?

What is discount on issue of debentures?

Can the company purchase its own debentures?

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

Describe the steps for creating Sinking Fund for redemption of debentures.

What is meant by ‘Issue of debenture at discount and redeemable at premium?

What is a ‘Convertible Debenture’?

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

What is meant by ‘Premium on Redemption of Debentures’?

What do you mean by Ratio Analysis?

List the techniques of Financial Statement Analysis.

State the meaning of financial statement analysis?

What are various types of ratios?

Distinguish between Vertical and Horizontal Analysis of financial data.

What are limitations of financial statement analysis?

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

State the meaning of Analysis and Interpretation.

List any three objectives of analysing financial statements?

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

Explain the nature of the financial statements.

List the techniques of Financial Statement Analysis.

Distinguish between Vertical and Horizontal Analysis of financial data.

List any three objectives of analysing financial statements?

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

The current ratio provides a better measure of overall liquidity only when a
firm’s inventory cannot easily be converted into cash. If inventory is liquid, the
quick ratio is a preferred measure of overall liquidity. Explain.

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover