What is ‘Capital Reserve’?
A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit. The term capital reserve is sometimes used for the capital buffers that banks have to establish to meet regulatory requirements and can be confused with reserve requirements, which are the cash reserves the Government requires banks to maintain.
What is discount on issue of debentures?
State the meaning of ‘Debentures issued as a collateral security’.
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
Describe the steps for creating Sinking Fund for redemption of debentures.
Can the company purchase its own debentures?
Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?
What is meant by conversion of debentures? Describe the method of such a conversion.
Can a company purchase its own debentures in the open market? Explain.
Explain the different types 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?
State the meaning of financial statement analysis?
Explain the process of preparing income statement and balance sheet.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress
What are Comparative 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?
Prepare the format of balance sheet and explain the various elements of balance sheet.
Explain the nature of the financial statements.
What are liquidity ratios? Discuss the importance of current and liquid ratio.
List the techniques of Financial Statement Analysis.