Features of Debentures

Debentures
Companies raise substantial amount of long term funds through the issue of debentures. The amount to he raised by way of loan from the public is, divided into small units called “Debentures”. Debenture may be defined as written instrument acknowledging a debt issued under the seal of company containing provisions regarding the payment of interest, repayment of principal sum. charge on the assets of the company etc. According to Sec. 2(12) of the companies Act ‘debenture includes debenture stock, bonds and any other securities whether constituting a charge on the assets of the company or not”.

Capital IQ Interview Questions

Features of Debentures:

1) It is a debt takes by the company from public and financial institutions.

2) Generally, debentures are issued for long period of time.

3) Debentureholders are entitled to receive periodical payment of interest (usually six months) at a fixed rate.

4) Interest on debentures has to he paid irrespective of profit.

5) Debenture holders arc entitled  the repayment of the amount lent as per the terms of contract
6) Debentureholders don't have voting rights.
7) Generally dehentureholders have fixed or floating charge on the assets of the company

Capital IQ Interview Questions - Share Capital Classification

Presentation of information relating to share capital in the Balance Sheet of a Company.

The prescribed form of the Balance Sheet of a company given in Schedule IV of the Companies Act 1956, requires the description of share capital under following categories.

1. Authorised or Nominal or Registered Capital: It refers to that amount which is stated in the Memorandum of Association as the share capital of the company. This is the maximum limit of capitgl which the company is authorised to issue and beyond which the company cannot issue shares unless the capital clause in the Memorandum is altered
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2. Issued Capital: It refers to that part of the authorised capital of the company which has actually been offered to the public for subscription.

3. Subscribed Capital: It refers to that part of the issued capital which has actually been subscribed by the public and subsequently allotted to them by the directors of the company.

4. Called up Capital: It refers to that part of the subscribed capital which has been called up by the company for payment.

5. Paid Up Capital: That part of the called-up capital which is actually paid by the shareholders is known as paid-up capital. The sum which is still to be paid is known-as Calls in Arrears.

Capital IQ Interview Questions - Characteristics of a Company

According to Justice Marshall a company is ‘an artificial being, invisible. intangible ind existing only in the contemplation of Law.’’ According to Sec.3(1) of the Companies Act defines a company as ‘company formed and registered under this Act, or an existing company’. An existing company means a company formed and registered under any of the former companies Acts.

Characteristics of a Company 

1) It is a Voluntary association of person.

2) A company has a separate legal existence. It can hold, purchase and sell property, can enter into contracts with others in its name.

3) It has a perpetual or continuous existence. Its existence is not effected by the death, lunacy or insolvency of any member. Members may he changing from time to time, but the company goes on for ever.

4) The liability of the members is limited to the extent of the face value of shares held by them.

5) The shares in a joint stock company are freely transferable, except in case of private companies.

6) It has a common seal. Being an artificial person it can act only through natural persons, called Directors.
All documents prepared by •directors will be valid only when it contains the common seal.

7) There is a separation of ownership and management. A company is owned by shareholders and managed by a separate body called ‘Board of Directors’.

8) In a public limited company, the minimum number of members is seven and there is no maximum limit. In case of private limited companies the minimum number is two and the maximum number is fifty.

9) A company comes into existence only after its registration under the companies Act. A company from incorporation to liquidation is governed by various provisions of the companies Act.

capital iq interview questions - accounting (freshers JRA )

1) What is Holding Co. & Subsidiary co

2) Differences b/w Public & Private company

3) NPV & IRR method of capital budgeting

4) What is IPO? And related questions

5) What is Semi variable cost examples

6) What is EPS (Earnings Price Ratio)

7) Accounting concepts

8) Accounting principles

9) What is Minority Interest

10) What is Accrual & Business Entity concept

11) What is Capital expenditure

12) What is BEP and its formula

13) What is Operating Cycle

14) Who is a proxy

15) What is perpectual succession

16) What is time value of money

17) What is GDR & ADR

18) What is Costing

19) What is Absorption Costing

20) What is Marginal Costing

21) What do u know about SEBI

22) What is Mutual Fund

23) What is Demat A/c

24) What is the difference b/w Equity fund & Debt fund

25) What is the difference b/w Primary Market & Secondary Market

26) Balance sheet

27) Income Statement

28) Ratios

29) What is FDI’s (Foreign Direct Investments)

30) Sensex

31) FII (Foreign Institutional Investors)

32) What is Exchange Rate

33) What is Working Capital

34) Methods of Valuation of Stock(FIFO,LIFO)

35) What is Zero Based Budgeting

36) EBITDA

37) Birdge Finance

38) Book Building process

39) Margin of Safety

40) Break Even Point

41) P/V Ratio

42) Venture Capital

43) Factoring

44) Difference b/w Depreciation & Amortization

45) Deferred Taxes

46) EPS

47) DPS (dividend per share)

48) Reconstruction of a Company

49) Capital lease

50) Financial lease

51) Operating lease

52) What is Cash flow Statement & Funds flow Statement

53) What is ABC Analysis

54) What are operating activities, financial activities and investment activities

55) What is earnings per share 56) What is share premium

57) What is Depreciations and types

58) What is derivative

59)What is payback period

60 ) What is the best method of capital budgeting and why

61) What is EOQ ? Ordering cost, Inventory cost

62) What is deferred revenue expenditure and examples