MBA Finance Interview questions

1. Okay byeeeeeee
NIce to have a chat wid you

1. Define finance?
Finance is nothing but money and by the meaning of financial
management is to manage the financial matters

procurement of funds and proper allocation of available funds in efficient
manner to maximize returns

Finance is related with cost, time, money and risk.It deals with matters
related to money and markets, resousce allocation amd its management are
tha part of this


finance means it is a stydy of money



2. y did we prepare BRS

BRS- is nothing but bank reconciliation statement, it is used to check the
bank balance as per pass book and the balance as per the cash book....

Eg: If a person deposits sum amount of money in the bank without an entry in
the pass book but entered only in the cash book. Dose the difference arises
and to overcome this problem BRS is used

“To show the difference between the cash book and pass book”

3. What factors affect financial pla n?

“ Economic & government policies”

changes in taxation legislation
fluctuating interest rates
rising inflation and unemployment
economic cycles
investment returns

4. what are the innovations in the finance,who are the major players in
finance & future outlook in the finance?

there is so many financial instruments are invented like
futures,option ,forwards,swaps.and so many other customer knowledge increased
according to customer intrest instruments invented.

5. Differences between Debe ntures and shares


1. debenture are the creditors to the company.
share hodlders are the owners to the company

2. debenture holders they dont have voting power.
Share holders have voting rights.

2. 3. Debebture interest rate is paid at predetermined fixed rate.

Dividend on share depends on profits of the company;

6. Types of Debentures
Registered Debentures : These are those debentures which are registered in the
register of the company. the names, addresses and particulars of holdings of
debenture holders are entered in a register kept by the company. Such
debentures are treated as non -negotiable instruments and interest on such
debentures are payable only to registered holders of debentures. Registered
debentures are also called as Debentures payable to Registered holders.
Bearer Debentures: These are those debentures which are not registered in the
register of the company. Bearer debentures are like a bearer check. They are
payable to the bearer and are dee med to be negotiable instruments. They are
transferable by mere delivery. No formality of executing a transfer deed is
necessary. When bearer documents are transferred, stamp duty need not be
paid. A person transferring a bearer debenture need not give any notice to
the company to this effect. The transferee who acquires such a debenture in
due course bonafide and for available consideration gets good title not
withstanding any defect in the title of the transfer -or. Interest coupons are
attached to each debenture and are payable to bearer.
Secured Debentures: These are those debentures which are secured against the
assets of the company which means if the company is closing down its
business, the assets will be sold and the debenture holders will be paid
their money. The charge or the mortgage may be fixed or floating and they may
be fixed mortgage debentures or floating mortgage depending upon the nature
of charge under the category of secured debentures. In case of fixed charge,
the charge is created on a particular asset such as plant, machinery etc.
These assets can be utilized for payment in case of default. In case of
floating charge, the charge is cre ated on the general assets of the company.

The assets which are available with the company at present as well as the
assets in future are charged for the purpose. A mortgage deed is executed by
the company. The deed includes the term of repayment, rate of interest,
nature and value of security, dates of payment of interest, right of
debenture holders in case of default in payment by the company. The deed may
give a right to the debenture holder to nominate a director as one of
the Board of Directors. If the company fails to pay the principal amount and

3. the interest thereon, they have the right to recover the same from the assets
mortgaged.
Unsecured Debentures: These are those debentures which are not secured
against the assets of the company which means when the company is closing
down its business, the assets will not be sold to pay off the debenture
holders. These debentures do not create any charge on the assets of the
company. There is no security for repayment of principal amount and payment
of interest. The only security available to such debenture holders is the
general solvency of the company. Therefore the position of these debenture
holders at the times of winding up of the company will be like that of
unsecured debentures. That is they are considered with the
ordinary creditors of the company.
Convertible Debentures: These are those debentures which can be converted
into equity shares. These debentures have an option to convert them into
equity or preference shares at the stated rate of exchange after a certain
period. If the holders exercises the right of conversion, they cease to be
the lender to the company and become the members. Thus convertible debentures
may be referred as debentures which are co nvertible into shares at the option
of the holders after a specified period. The rate of exchange of debentures
into shares is also decided at the time of issue of debentures. Interest is
paid on such debentures till its conversion. Prior approval of the
shareholders is necessary for the issue of convertible debentures. It also
requires sanction of the Central Government.
Non-Convertible Debentures: These are those debentures which cannot be
converted either into equity shares or preference shares. They may be secured
or unsecured. Non-convertible debentures are normally redeemed on maturity
period which may be 10 or 20 years.
Redeemable Debentures : These debentures are issued by the company for a
specific period only. On the expiry of period, debenture c apital is redeemed
or paid back. Generally the company creates a special reserve account known
as "Debenture Redemption Reserve Fund" for the redemption of such debentures.
The company makes the payment of interest regularly. Under section 121 of the
Indian Companies Act, 1956, redeemed debentures can be re -issued.
Irredeemable Debentures : These debentures are issued for an indefinite period
which are also known as perpetual debentures. The debenture capital is repaid
either at the option of the company by giving prior notice to that effect or
at the winding up of the company. The interest is regularly paid on these

4. debentures. The principal amount is repayab le only at the time of winding up
of the company. however, the company may decide to repay the principal amount
during its lifetime.



7 what is float discuss?
when the rate & prices are not stable that is float

1. Float in stock market: Float is the total number of equity shares that are
ready for free trade in secondary market.

2. Float is the period between opening and closing of a transaction
3. Float in Companies Act 1956: Float is the amount of money to be raised for
the company

8. Company why should issue Debentures and shares, Which one should issue
better for company and why?

to raise capital it issue debentures and shares but if interest is
low, company should go for issuing debentures
because if it issue shares ownership dilut es it results decrease in EPS

The company raises capital/finance using 2 methods.

1)Internally.
2)Externally.

Internally the finance is raised by the issue of the debentures that is
raising the money on intrest from the borrowers.

Externally the finance is raised by the issue of the shares,preference shares
and equity shares.


if the rate of interst is less than tha company should issue a debenture
beacuse there is a low risk .but if interst is to much high than company
should issue share


9.wht u mean by equity share


Equity is an ordinary share of any company which invested or holded by
company's share holders and dividend or interest on those shares are given
to the shareholders based on the company's profit. If the company not e arning
profit then the shareholders will not receive any dividend or interest untill
the company not start making profit

Equity is the ordinary share which is invested in the company by the
shareholders. it includes risk as well as return based on the company's
profit.

10. What does planning and forecasting mean?

5. planning: making a path to an action
Forecasting: predicting future

11. what is risk assessment
Risk assessment is a step in a risk management process. Risk assessment
is the determination of quantitative or qualitative value of risk

12. WHAT DO MEAN BY OPERATING PROFIT
The profit earned from a firm's normal core business operations. This
value does not include any profit earned from the firm's investments (such as
earnings from firms in which the company has partial interest) and the
effects of interest and taxes. Also known as "earnings before interest and
tax" (EBIT).


Calculated as:

Operating Profit = operating revenue - operating expenses

14. EBIT stands for?
Earnings before Interest and taxes

15. what is the effect of crr hike on market?

CRR is the amount of funds commercial banks have to keep with
RBI.If RBI decides to increase the percent of this, the available amount w ith
the banks comes down. RBI is using this method (increase of CRR rate), to
drain out the excessive money from the banks.

16. In Banking industry difference between interest income and interest
expenses is called as .............

Net interest income

17. What are the key steps involved in formulating treasury policy of a firm?

Investment, cahs mangement, etc

18. what is del credare commission

it is a payment made by principal to sales agent for
collecting the amount of goods sold by agent on credit basis.


19. what is difference between primary market & secondary market?

PRIMARY MARKET: IT IS ALSO CALLED NEW ISSUE MARKET.HERE INVESTOR WILL BUY
SECURITIES BUT CAN'T SELL THERE.

SECONDARY MARKET: IT IS ALSO CALLED STOCK MARKET OR STOCK EXCHANGE. IT IS AN
ORGANIZED MARKET WHERE SECURITIES ARE TRADED I.E BOTH BUYING AND SELLING
ACTIVITIES TAKEN PLACE.

20. what Are Hedge Funds?
Hedge funds are risk free funds.

6. Hedge is using for risk avoiders. so these hedg ing is give higher protection
with minimum gain for EX; LAND INVESTMENT, GOLD INVESTMENT




21. What is the difference between commercial banking and investment banking?


22. what is sensex,nifty and what is difference between those two

sensex is the index name of BSE and nifty is the index name
of the NSE. Where sensex deal with 30 nomber of shares and nifty deal with 50
number of industries. “sensex means sensitive index “



23. Among fixed and floating exchange rates which is the best for india? how?

According to the market situation the exchange should be very.It
may be Fixed or it may be variable.When inflation is going on India should
prefer the Floating exchange rates.

24. What are the responsibilities of financial manager?

The finanace manager has to deal with the mainly or generally with thw 4 A's,
these are

1)Anticipation of fund (i.e. capitalisation)
2)Acquisition of fund(i.e. Raising of funds)
3)Allocation of fund(i.e. investment decision)
4)Assessment of fund(i.e. evaluation of financial
activities)

25. What are GAAP?

GAAP MEANS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.IT INCLUDES ALL THE
POLICIES,CONVENTIONS,CUSTOMS,PRINCIPLES FOLLOWED WHILE PREPARING ACCOUNTING
BOOKS.THESE ARE

1 BUSINESS ENTITY CONCEPT
2 GOING CONCERN CONCEPT
3 MONEY MEASUREMENT CONCEPT
4 HISTORIC COST CONCEPT
5 DUAL ASPECT
6 MATCHING CONCEPT
7 SUBSTANCE OVER FOR M
8 CONSISTENCY
9 CONSERVATISM
26. what is BSE? tell me the details about that?

The Bombay Stock Exchange or BSE as it is most popularly known is
the oldest stock exchange in Asia the Bombay Stock Exchange is the biggest in
the world. Being located at the Dalal Street in Mumbai, The stock exchange
was established in the year 1875 as "The Native Share & Stock Brokers
Association." Bombay Stock Exchange is the first stock exchange in India to

7. obtain permanent recognition from the Government of India under the
Securities Contracts (Regulation) Act, 1956. The earlier the exchange was
operated as the Association of Persons, it is now incorporated under the
Companies Act, 1956. BSE-BOMBAY STOCK EXCHANGE WHERE NEARLY 50000 COMPANIES
LISTED FOLLOWING THE RULES AND REGULATION FRAMED BY THE SEBI. IT WAS THE ONLY
STOCK EXCHANGE MARKET IN INDIA WHERE INVESTORS TRADE IN SHARES OF 30.




27. On what basis we take 30 scrips in BSE Index For calculating BSE sensex
Index ???

On the basis of value of market capitalization of the company

28. What is an equity stake/ total equity ?




29. what is the difference between finance and accounting,how they are
different with other.?

finance is the management of fund. planing of fund flow. how we will get fund
& where we will expend that.

accounting is managment of transctions. in accounting we will manage records
of transuctions. book keepings.

30. how ratio analysis can help to the company.

Ratio analysis is an important and widely use tool which helps in
definining whether the firm is profitale or not, whether the firm is able to
meet its short term obligations or the shareholders happy or not

31. Types of ratios

liquidity ratio:
measures the short term solvency or financial position of a
firm. short term paying capacity of and ability to meet its current
obligations.like current ratio,liquid ratio etc.


2 leaverage ratio: cost and repayment of long term obligation. like debt
measures the firm ability to pay interest equity ratio, interest coverage
ratio




3. activity ratio:
Measures the efficiency with which the resources of a firm
have been employed. like stock turnover ratio,debtor turnover ratio.


4. profitability ratio:

8. Measures the overall performance and effectiveness of
the firm. like net profit ra

32. what is the difference between JOURNAL ENTRY & LEDGER

Journal is primary entry book which shows all primary transacti on first
made in journal & suggest which a/c should be credited or which a/c should be
debited.

on the other hand ledger is an a/c which is prepared on the basis
of entries made in journals this entry also call as book final entry.

34. Being the finance manager being of a company how will you make finance
forecasting?

First I will review the previous year's financial statements
to get an Idea about the financial operations. Then will discuss with the
management about the curre nt year's targets (viz. sales / services) & their
growth expectations. Based on that will prepare provisional P&L acct &
Balance sheet. I also will check whether there is any possibility in cost
cutting and make the adjustments accordingly to arrive at ex pected profit.



35. why are you doing job?

i want to live independently and my father have done very hard work
to see me in higher position. so to be proud of my father and society i want
to do job.

36. How you convince the customer?
knowing the customer details in the first 3 -4 questions , then knowing
the actual problem and then find out actual root cause of the problem. start
analysing the probable answers .

37. Why REPO rate is being hiked to control Inflation ?

Whenever the banks have any shortage of funds they can borrow it from RBI.
Repo rate is the rate at which our banks borrow rupees from RBI. A reduction
in the repo rate will help banks to get money at a cheaper rate. When the
repo rate increases borrowing from RBI becomes more expensive.

Hence, When the repo rate is hiked, the bank gets loan at a higher interest
rate from RBI, and henceforth Banks give loan to retail customer/ corporate
customer at a more higher rate, so demand for the loan from the customers of
bank decreases decreases and there is less money in the market.

Since, the liquidity of the marked is sucked by increasing Repo Rate, public
can't afford to pay more for any particular commodity, and hence the
inflation of the economy gets controlled.


38. what is the difference betwen p & l a \c and income & expenditure
statement?

Through P/L a/c we get Net profit or net loss of a concern but incase of
I/E a/c we get net surplus or net deficit of the organigation as we prepare

9. P/L a/c for a profitable organig ation & I/E a/c for a nonprofitable
organigation

39. What is the entry for deprecation?

deprciation a/c...Dr

To Asset A/C
40. Different types of insurance
1 life insurance
2 genteral insurance

41. what is crossover rate?

Crossover rates have to do with the amount of earnings that
are generated by two different but similar projects. The crossover rate is
the point at which the two projects achieve the same net present value. In
terms of investments, calculating a crossover rate between two similar
securities can help an investor determine what to buy and what to sell.

42. why one rupee note is signed by the ministry of finance? is governor has
the right to sign this note? is there any interference by the RBI?

One rupee note are printed by Govt of India itself whereas
other currency are printed by Reserve Bank on behalf of Govt of India
therefore governor takes the responsibility.

43. Now a day’s which type of fund is best in share market?

A Systematic Investment Plan is not a type of mutual fund. It is
a method of investing in a mutual fund. Well, it depends upon investor's risk
taking ability, tenure for which he wants to invest according to me, balanced
fund, gold fund and investment thru SIP is a better way for investment. A mutual
fund is nothing more than a collection of stocks and/or bonds. You can think of a
mutual fund as a company that brings together a group of people and i nvests their
money in stocks, bonds, and other securities. Each investor owns shares, which
represent a portion of the holdings of the fund.

44. what is the meaning of portfolio management? what comes under portfolio
management?

Managing different types of securities for minimizing risk and
maximizing returns through diversification of funds into different
securities. Shares,Bonds,gold,Real assets are some of securities comes



under PF investments.
Security analysis,
Security selection,
Portfolio analysis,
Portfolio selection,and
Portfolio evaluation comes under portfolio management...
and minimum risk.

45. What is the difference between Indian GAAP and Accounting Standards.

10. GAAP Stands for General ly Accepted Accounting Principles.
Accounting Standardards are issued by the Institute of Chartered Accountants
of India (ICAI). This is the largest accounting body in the country. Now the
Accounting Standards are 29.Accounting Standards are prepared by e xport
persons.Generally Accepted Accounting Principles means just like Accounting
Concept which means every person can accept this principles

46. What do you mean by favorable balance of trade
Having exports which exceed imports

47. whats Dollex 30?

DOLLEX-30 is the dollar version of BSE Sensex,

48. whats Derivative?

In finance, a derivative is a financial instrument (or, more simply, an
agreement between two parties) that has a value, based on the expected future
price movements of the asset to which it is linked —called the underlying
asset—
[1]
such as a share or a currency. There are many kinds of derivativ es,
with the most common being swaps, futures, and options. Derivatives are a
form of alternative investment .

49. SAP FI Accounts Payable (AP) End User Documents

Liguidity means flow of assets...means how easily can we change
our asset in liquid form(money)eg: gold's liquidity is more than land

50. What is BEP? How is it calculated?

BEP=break even point.....

and formula.... fixed cost
----------X100
p/v ratio

In economics, specifically cost accounting, the break -even point (BEP) is the
point at which cost or expenses and revenue are equal: there is no net loss
or gain, and one has "broken even". Therefore has not made a profit or a loss

51. What is deferred revenue?

Revenue that is considered a liability until it becomes relevant to
the business at hand, such as a payment received for work that has not yet
been performed. opposite of deferred charge.

52. If private comapny will takeover the public company it will come under
which type of takeover

'reverse takeover

53 nikkie stock exchange belongs to which country

japan stock exchange

54. full form of sensex?

11. IT IS A SENSITIVITY INDEX OF BSE

55. WHAT IS THE DIFFERENCE BETWEEN Speculation and Investment?

investment:1.the investor invest for long term gain purpose
2. the investor hold securities for long period.
3.risk is less as compare to speculation
4.the rate of return is less as compare to speculation
speculation:1.the investor invest for short term gain
purpose
2.the investor hold securities very short period say 1 or 2
days
3.risk is high
4.rate of return is more
5.it invole buying and silling of securities


56. WHAT IS THE dIFFERENCE BETWEEN ASSETS ALLOCATION AND SECURITY SELECTION?


allocating the available asst of a company for maximum
utilization

investing the available funds to gain maximum profit.

57. What is Shares Split?
share or stock split is nothing but dividing the stock it is mostly made
in case of the company whose share value is high,the idea behind this is
that once the price of the share is reduced it can be purchased by retail
or small investors and increases the volume of trade

58. WHAT IS DIFFERENCE BETWEEN BANK RATE & REPO RATE


Repo or Repurchase rate is the rate at which banks borrow funds from the RBI
to meet the gap between the demand they are facing for money (loans) and how
much they have on hand to lend.

If the RBI wants to make it more expensive for the banks to borrow money, it
increases the repo rate; similarly, if it wants to make it cheaper for banks
to borrow money, it reduces the repo rate.
Bank Rate

This is the rate at which RBI lends money to other banks (or financial
institutions)
The bank rate signals the central bank's long -term outlook on interest
rates. If the bank rate moves up, long -term interest rates also tend to move
up, and vice-versa.
Banks make a profit by borrowing at a lower rate and lending the same
funds at a higher rate of interest. If the RBI hikes the bank rate, the
interest that a bank pays for borrowing money (banks borrow money either from
each other or from the RBI) incr eases. It, in turn, hikes its own lending
rates to ensure it continues to make a profit.

58. what is the internal rate of return(IRR) of eurekaforbes?

12. Internal Rate of Return is that rate of Return at which the net present value
is equal to Zero or it is the Rate which equates the present value of the
cash inflows to the cash outflows.

NPV = Cash Inflow - Cash outflow
NPV = Zero



59. What is Credit Risk?

Credit Risk is the type of risk which arise when the borrower fails to meet
the obligation to th e lender on the date of maturity of a particular loan
whether willfully or unwillingly by way of principal or interest. Credit risk
may also may arise if third party fails to meet obligation in favour of the
lender (e.g, if bank gives loan against insurance policy and insurance
company fails to meet the bank's obligation).

The following are the types of credit risk
1) willgful default
2) Time Risk
3) Sovering Risk

60. What is Market Risk?
The possibility that the value of an investment will fall because of a
general decline in the financial markets The possibility that the value of an
investment will fall because of a general decline in the financial
markets.For investors, the risk associated with fluctuations in stock
prices
The values of marketable securities fluctuate every day. Sometimes these
changes in value have nothing to do with the real "value" of the investment
but instead are influenced by a variety of unrelated events such as political
changes, congressional action s, US and foreign activities

61. What are the common mistake made in Invest ment?

The common mistake done in investment is investing all money in one palce..
by which money become stagnent. assuming FD as a safe investment is also a
mistake where the FD interest rate will not outdo the inflation rate.
Investing in insurance schemes without proper study of market, and also
investing in hot stocks are common mistakes.

62. What is Merger? What is Acquisition? What are motive behind mergers And
acquisitions?


when two companies merges with together it is called as merger. when a
company purchases or aquires another company, it is aquisition. main moto is
to widening the operation, gain market leadership, increasing capital and
managerial abilities

63.. hat is the Risk of investment?

Investment Risk is the potential for fluctuation in the value of an
investment, which could result in loss of Principal. Some causes of
Investment Risk are: general market fluctuations, industry -specific market

13. fluctuations, trends in Interest Rates and foreign exchange rates, company
specific factors, and others. Higher Risk is usually associated with the
potential for higher long -term rates of return

64. what is management?

Management is the art of getting things done throu gh other people,and it
includes the effective utilisation of factors of production. men, machine,
material, money etc.)


65. How can you create a secret reserve?


A secret reserve is created by the following methods:

1. By under valuation of assets much below their cost or market value, such
as investment, stock in trade, etc.


2. By not writing up the value of an asset, the price of which has
permanently gone up.


3. By creating excessive reserve for bad and doubtfu l debts or discount on
sundry debtors.


4. By providing, excessive depreciation on fixed assets.

5. By writing down goodwill to a nominal value.

6. By omitting some of the assets altogether from balance
sheet.

7. By changing capital expenditure to rev enue account and thus showing the
value of assets to be less than their actual value.



8. By overvaluing the liabilities.

9. By the inclusion of fictitious liabilities.

10. By showing contingent liabilities as actual liabilities




66. what are the shortcut keys of operating share terminal?

THE FOLLOWING ARE THE SHORT CUTS KEYS .
F 1 BUY ORDER
F2 SELL ORDER
F3 ORDER BOOK
F5 BEST 5 BIDS

14. F8 TRADING CONFIRMATION

67. what is post-issue capital of the company

Post-issue activities:- It includes collection of application forms,
screening of applications, deciding allotment procedure, mailing of allotment
letters,, share certificates and refund orders

68. What is Repo?

repo it is the rate set up by rbi.at this rate the rbi lending money to
banks.


69. Types of Lease?

two types of lease are their
1. operating lease
2. financial lease

70. what is the difference between prepaid expenses and preliminary expenses?


prepaid expenses are the paying by the company in advance but
the preliminary expenses are made at when the company is established ex;-
registration charges

71. what is the difference between stock & shares ,

stock and shares is same

72. Why the company prefering prefence capital rather than debenture capital ?

with an object of diversifying the risk during the loss years of
the company preference shares are issued. but in case of debentures even
during the times of loss years also interest should be paid along with fixed
interest. and more over preference dividends payments can also be paid during
next years profit of the companies in case of cumulative preference shares.
so for all this reasons company issue preference shares instead of
debentures.


73. What is an auction ? Why does it occur

An auction is a process of buying and selling goods or services by
offering them up for bid, taking bids, and then selling the item to the
winning bidder. In economic theory, an auction may refer to a ny mechanism or
set of trading rules for exchange.


74. What is the Difference between hire purchase and a finance Lease

In Hire purchase you buy the goods whereas in leasing you
take the goods on lease.

75. What Is A Mutual founds

15. mutual fund means collect the fund from the small investor and this fund is
mobilized from the different securities.mutual fund are also financial
securities.


77. How the price of a stock is calculated in Indian stock market (NSE or
BSE)?

The market index for Bse is sensex and Nse is NIFTY . There are 30
stocks in sensex and 50 in nifty. The stocks are selected on the basis of
higher market capitalisation.So these stcoks represent their respective
industry. The stcoks are changed at regular intervals on the basis of higher
market cap.

78. whts d difference between wealth, cash n money?

Wealth is combination of liquid asset+fixes asset and Cash is liquid and
convertable asset and money is the durt of your hand if it is in your pocket
it must be convertable into different way.

79. DESCRIBE A FAILURE IN PROFESSIONAL OR ACADEMIC LIFE?HOW TO OVERCOME

A failure in professional or academic life is due to lack of proper
understanding, lack work, and lack of proper application. To overcome it by
right understanding of the problem, application of proper knowledge with
sufficient guidance and work.

80. NP?

NP i.e. Net profit is calculated by subtracting a company's total expenses
from total revenue, thus showing what the company has earned (or lost) in a
given period of time (usually one year). also called net income or net
earnings. In simplistic terms, net profit is the money left over after paying
all the expenses of an endeavor.

81 , What is GDR?

Global Depository Receipt means any instrument in the form of a
depository receipt or certificate created by the overseas depository bank
outside India and issued to non - resident investors against the issue of
ordinary shares or Foreign Currency Convertible Bo nds of issuing company.
Among the Indian Companies, Reliance Industries Ltd. was the first company to
raise funds through a GDR issue.


82 difference Between Cost Accounting and Financial Accounting?

cost accounting helps in finding out cost of a product and control of
cost.whereas financial accounting helps in knowing the financial position of
the business i.e is profit or loss in a financial year.

83.wht is preference share capital..?

Preference capital means the shareholders of a company holding preference
share are not the owners of the co.The preference share holders get fixed
percentage of dividend from the profit earned by the company.Also they get

16. preference over equity share holdrs during the ti me of payment of dividend
and during the time of winding up of the company.

84 What are Subsidiary Books?

subsidiary books,it is nothing but a ledger,which can be maintained by big
organisation concerns, subsidiary books includes that cash book, purchase
book, preturn book,sales book, sreturn book,b/r book,b/p book and proper
journal.

85. Take Over Means?

Take over is the acquisation of a small company's ordinary share capital by a
bigger company, finance by cash, an issue securities or a combination of
both.

86. What is RONA?

RONA means return on net Assets


87. what is leverage?

The degree to which an investor or business is utilizing
borrowed money. Companies that are highly leveraged may be at risk of
bankruptcy


88. what is difference between purchases register and purchases
books

purchase register and purchase books are more or less similar but still
difference is there purchase register is used to maintain list of purchased
items what ever we have purchased that will be registered in the purchase
register this purchase register will helps at the time of year ending to find
out the outflow of the business.purchase books are used to maintain the list
of credit purchases if we purchased for cash that will be entered in th e cash
books if it is a credit purchase means that will be entered in the purchase
book.i hope i help you

89. What is Profit?

In simple terms profit is the diffeence between sales and cost
incurrred by the organisation.
Profit = Sales or turnover - Cost or expenses

90. what is Royalty? And how it is being paid. What is the general t erms and
conditions for royalty..?


Rayalty is nothing but nearly rent payable to land lord. Rayalty paid based
upon the actual agrrement like actual out put produced or fixed rent paid.
Generally there is basic conditions for royalty based upon the agrrement
prepared by the land lord if the conditions are satisfied by the leassee they
paid that agrreed royaltu

17. 91. Profit is a Liability or asset?

Profit is a liability because it is earned with the use of
investment made by shareholders, in case of company is not distributed profit
it should be shown in the liability side of the balance sheet.



92. What is Debenture?

Debenture is a legal contact agrrement between Company and
Debentureholders. Debentureholders will get fixed rate of interest every year
and will get Principal amount after maturity period.


93. what is meant by index in stock marketing

Index in stock marketing means that shows current market
position related to companies.

94. What is Profit?


In simple terms profit is the diffeence between sales and cost incurrred
by the organisation.

Profit = Sales or turnover - Cost or expenses

95. difference between options and futurs

The primary difference between options and futures is that
options give the holder the right to buy or sell the
underlying asset at expiration, while the holder of a
futures contract is obligated to fulfill the terms of
his/her contract.

in case of options, for a buyer (or holder of the option),
the downside is limited to the premium (option price) he has
paid while the profits may be unlimited. for a seller or
writer of an option, however, the downside is unlimited
while profits are limited to the premium he has received
from the buyer.

96. what is derivative?

Derivative is a financial instrument whose value is derived
from another asset or commodity. Derivatives ar e of 4
types.. Options, Forwards, Futures and Swaps.

97.