Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | 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.

What is ‘Capital Reserve’?

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

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

Can the company purchase its own debentures?

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

Explain the different types of debentures?

Can a company purchase its own debentures in the open market? Explain.

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?

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

List the techniques of Financial Statement Analysis.

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

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

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

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?

Explain the limitations of financial statements.

Explain how common size statements are prepared giving an example.

State the meaning of financial statement analysis?

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.