Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What does a Bearer Debenture mean?

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

What is ‘Capital Reserve’?

Can the company purchase its own debentures?

What is discount on issue of debentures?

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

Explain the different terms for the issue of debentures with reference to their redemption.

Can a company purchase its own debentures in the open market? Explain.

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

Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?

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?

List the techniques of Financial Statement Analysis.

Explain the nature of the financial statements.

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

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 are liquidity ratios? Discuss the importance of current and liquid ratio.

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

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

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