Financial Accounting

Capital redemption reserve can be used only for the issue of bonus shares

Ratio analysis helps in inter-firm as well as intra-firm performance comparisons

Trend analysis is also termed as trend percentage

Depreciation is a non-cash item

Terms of redemption of debentures are mentioned at the time of issue.

Balance in debenture redemption reserve after redemption is transferred to capital reserve.

Purchase of fixed asset in an investing activity

A cash flow statement is prepared in order to analyse the past movement of cash in anorganisation.

Peak working capital is the highest amount of the working capital required by a business organisation.

The working capital cycle is also known as operating cycle

Treatment of monetary items is same as per integral and non-integral financial operations.

Debenture interest in case of running business taken over by company is distributed on timebasis

Capital cost is the cost for arranging additional funds to support credit sales

Proposed dividends are contingent liability after commencement of Companies Act, 2013

Calls in arrear are deducted from share capital

Patents are fictitious assets

Standard quick ratio should be 1:1

Borrowed fund consist of short term borrowings

Debenture redemption reserve is created out of capital reserve

Debenture due for redemption within 3 months from the balance sheet date is appears under the head of long-term liabilit