What is meant by redemption of debentures by conversion?
When a debenture holder can convert his/her debentures into shares or new debentures after – the expiry of a specified period of time, then it is known as redemption of debentures by conversion. As the company do not need to pay any funds for the redemption, so there is no need to maintain the Debenture Redemption Reserve (DRR). The new shares or debentures may be issued at par, premium or at discount.
What is ‘Capital Reserve’?
State the meaning of ‘Debentures issued as a collateral security’.
Can the company purchase its own debentures?
What is meant by ‘Issue of debenture at discount and redeemable at premium?
What is discount on issue of debentures?
Describe the steps for creating Sinking Fund for redemption of debentures.
What does a Bearer Debenture mean?
What is a ‘Convertible Debenture’?
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?
Explain in detail about the significance of the financial statements.
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.
List the techniques of Financial Statement Analysis.
Distinguish between Vertical and Horizontal Analysis of financial data.
What are limitations of financial statement analysis?
State the meaning of Analysis and Interpretation.
Explain the limitations of financial statements.
Explain how common size statements are prepared giving an example.
What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.
How would you study the Solvency position of the firm?