Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is a ‘Convertible Debenture&r

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

What is ‘Capital Reserve’?

Can the company purchase its own debentures?

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

What is discount on issue of debentures?

What is meant by conversion of debentures? Describe the method of such a conversion.

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

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 Analysis and Interpretation.

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

List the techniques of Financial Statement Analysis.

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

Explain how common size statements are prepared giving an example.

Prepare the format of statement of profit and loss and explain its items.

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

What do you mean by Ratio Analysis?

The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?

What do you mean by Common Size Statements?