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

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?

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

What is a ‘Convertible Debenture’?

Explain the different types of debentures?

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

Describe the steps for creating Sinking Fund for 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 usefulness of trend percentages in interpretation of financial performance of a company.

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

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?

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

State the meaning of Analysis and Interpretation.

State the meaning of financial statement analysis?

Explain how common size statements are prepared giving an example.

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.

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

What do you mean by Common Size Statements?