What is meant by ‘Redemption out of Capital?
When debentures are redeemed out of capital and no profits are utilised for redemption, then such redemption is termed as redemption out of capital. In such a situation, no profits are transferred to the Debenture Redemption Reserve (DRR)
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.
Describe the steps for creating Sinking Fund for redemption of debentures.
What is ‘Capital Reserve’?
Can the company purchase its own 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.
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 financial statement analysis?
What do you mean by Common Size Statements?
‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
What do you understand by analysis and interpretation of financial statements? Discuss its importance.
How would you study the Solvency position of the firm?
Explain the process of preparing income statement and balance sheet.
Distinguish between Vertical and Horizontal Analysis of financial data.
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 any three objectives of analysing financial statements?