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.
State the meaning of ‘Debentures issued as a collateral security’.
Describe the steps for creating Sinking Fund for redemption of debentures.
Can the company purchase its own debentures?
What is discount on issue of 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.
What is meant by ‘Issue of debenture at discount and redeemable at premium?
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?
What are Comparative Financial Statements?
State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors
What do you mean by Ratio Analysis?
Explain in detail about the significance of the financial statements.
Prepare the format of balance sheet and explain the various elements of balance sheet.
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 the nature of the financial statements.
State the meaning of financial statement analysis?
‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.
Prepare the format of statement of profit and loss and explain its items.