Capital IQ is a provider of information and analytical tools for investment bankers, money managers, and other financial
professionals.
Difference between Reserve
1 capital and capital reserve
2 share premium
3 bills of exchange
4 ADR DEFINE
There is a difference between reserve capital and capital
reserve that is capital reserve is the reserve of the firm and
reserve capital is part of authorized capital not called up
This is the account to which the amount of money paid (or
promised to be paid) by a shareholder for a share is credited
to, only if the shareholder paid more than the cost of the
share.
An unconditional order issued by a person or business which
directs the recipient to pay a fixed sum of money to a third
party at a future date. The future date may be either fixed or
negotiable. A bill of exchange must be in writing and signed
and dated. Also called draft.
American Depositary Receipt. A negotiable certificate issued
by a U.S. bank representing a specific number of shares of a
foreign stock traded on a U.S. stock exchange. ADRs make
it easier for Americans to invest in foreign companies, due to
the widespread availability of dollar-denominated price
information, lower transaction costs, and timely dividend
distributions.

5 accounting concepts
6 What is net worth?
7 what is assets
what is the meaning of the
8 capital ique
what is bench finance
10 what is deffered liability
11 private placement
12 what is break even point
They are 10 concepts. They are as follow: 1.Business Entity
concept 2.Going Concern concept 3.Money Measurement
concept 4.Cost concept 5.Accounting Period concept 6.Dual
Aspect concept 7.Matching concept 8.Realization concept
9.Accrual concept 10. Objective Evidence concept.
assets more than the liability
Any item of economic value owned by an individual or
corporation, especially that which could be converted to
cash.
IQ means intelligent quotient. Possessing IQ related to the
management of Capital is called Capital IQ.
cost accounting, economy, Interest rates etc
Deferred liability is the liability, the time for settlement or
payment or adjustment of which will be in future and not
known. e.g. gratuity, which can be paid in the next year
when the employee leaves, or it can be paid after 10 years
when the employee retires, or after his death.
The sale of securities to relatively small number of selected
investors as a way of rising capital. It was an opposite of
Public issue.
It is the point at which cost or expenses and revenue are
equal.
 The selling of a company's accounts receivable, at
a discount, to a factor, who then assumes the credit risk of
the account debtors and receives cash as the
debtors settle their accounts. also called accounts receivable
13 what is factoring financing.
Balance Sheet are basically 2 types 1. Horinzental Balance
Sheet (Dr.Side Capital,Loan & Liblity Credit Side
What are the types of the Assests(Current & Fixed)Advances etc. 2.Vartical Balance
14 Balance sheets ? Sheet (Uppor Portion as debit, Lower portion as credit)
Inventory is the total amount of goods and/or materials
15 What is Inventory? contained in a store or factory at any given time
what is debentures, types of reedemable debenture,irredemable debenture,convertible
16 debentures debenture,non-convertible debenture
In every cases whether it is individual or huf/ Co.or Firm
the rate of tds is 1.03% .
in this case the tds amount will be
how to calculate sub contract =48500*1.03%
17 tds his bill 48500? 499.55
A method of financing, used by companies before their IPO,
18 what is meant by bridge finance to obtain necessary cash for the maintenance of operations.

what is nse free float
19 capitalization
what is share split and types of
20 it explain?
What is the difference between
21 merger and consolidation?
what is the difference between
22 take over and aquisation?
Free-float market capitalization is defined as that proportion
of total shares issued by the company which are readily
available for trading in the market. It generally excludes
promoters' holding, government holding, strategic holding
and other locked-in shares, which will not come to the
market for trading in the normal course.
existing shares are divided into multiple shares 1. Forward
stock splits 2. Reverse stock splits
A Merger is when two or more corporations come together
but only one of the corporation stays exists afterwards. For
example if company A and Company B merge to and only
company A or B exists afterwards. In consolidation, when
two or more corporations come together to form a
completely new corproation. For example company A and
Company B consolidate to form company C.
There is no tangible difference between an acquisition and
a takeover; both words can be used interchangeably - the
only difference is that each word carries a slightly different
connotation. Typically, takeover is used to reference a
hostile takeover where the company being acquired is
resisting. In contrast, acquisition is frequently used to
describe more friendly acquisitions, or used in
conjunction with the wordmerger, where both companies
are willing to join together.
 what is the formula for profit
23 margin? Selling Price=Cost Price/((100-margin%)/100)

Revenue is the gross inflow of economic benefits during the

What is deference between
24 Revenue and Income
period arising in the course of ordinary activities of an entity
when those inflows result in increases in equity, other than
increases relating to contributions from equity participants.
Income is the increase of economic benefits during the
accounting period in the form of inflows or enhancements of
assets or decreases of liabilities that result in increases in
equity, other than those relating to contributions from equity
participants.

These are assets not represented by tangible possession or

property. Examples of preliminary expenses, discount on
what are fictious assets? give issue of shares, debit balance in the profit and loss account
25 some examples? when shown on the assets side in the balance sheet
Liquidity ratios,Solvency ratios,Activity ratios,Profitability
26 types of ratios ratios
What is the entry for forfeiture
27 of shares? share capitala/c to share forefeiture a/c
 Forfeiture may be termed as penalty for violation of terms of
contract. Forfeiture of shares means taking back of shares by
the company from the shareholders. If the shareholder makes
default in payment of calls on shares, then the company can
28 What is forfeiture of shares? use their option of forfeiting the shares.
The expenditure incurred by producing a further unit of a
product or service, or the expenditure saved by not
producing it. Marginal cost pricing is the fixing of the price
29 What is marginal costing? of all units at the cost of producing the last unit.
Deferred Revenue Expenditures are those expenditures
which have been incurred in an accounting period and they
what is deferred revenue do not create any assets but their benefit is spread in more
30 expenditure? then one accounting period Ex. Advertisement Cost
The present rate of Service tax is 12.24% on the gross
31 service tax present rate amount of service bill.

what is the difference between
intangible assets and fictious
32 assets
Fictitious assets-fictitious assets are deffered revenue
expenditure whose benefit is derived over long period of
time.Even accumalated losses are also fictitious assets as
they are written off over a period of time.All fictitious assets
are intangible but all intangible assets are not fictitious.ex
goodwill.patents,trademarks,copyrights are intangible but
not fictitious.following are the examples of fictitious assets
are-preliminary expenses,discount on issue on debenture and
shares,underwriting commission,miscellaneous
expenditure,profit and loss(dr).

33 what is the p/e ratio?

An audit is an inspection to determine whether a company is

compliant with a set of governing rules. An internal audit is
conducted by a company on its own operations while an
external audit is conducted by a regulatory agency or
What is the internal audit? and customer to determine whether the auditee is obeying set
34 exteranal audit? regulations or contracts.
35 What is diluted EPS? diluted divedend
Personal Account:Debit the receiver Credit the giver Real
Account : Debit what comes in Credit what goes out
what are the golden principle of Nominal Account : Debit all expenses and losses Credit all
36 accounting? incomes and gains
 Money made available for investment in innovative
enterprises or research, especially in high technology, in
which both the risk of loss and the potential for profit may
37 venture capital be considerable. Also called risk capital.

The sale of securities to a relatively small number of

select investors as a way of raising capital. Investors
involved in private placements are usually large banks,
mutual funds, insurance companies and pension funds.
Private placement is the opposite of a public issue, in which
38 What is Private Placement? securities are made available for sale on the open market.

Stock that has been repurchased by the issuing company.

What is 'TREASURY STOCK / These shares don't pay dividends, have no voting rights, and
39 TREASURY SHARES'? should not be included in shares outstanding calculations.

40 What is Earning per share?


41 what is finance?
what is the diffrence between
42 gross profit& net proffit?
43 what is suspense capital?
what is the difference between
commercial banking and
44 investment banking?
what is the difference between
45 profit and gain?
· The science of the management of money and other assets.
· The management of money, banking, investments, and
credit. Increasing the money value. The supplying of funds
or capital.
gross profit is the result of the operating activities i.e. sale
and purchase (items of the trading a/c)whereas while
calculating net profit we also take into consideration the non-
operating expenses and income(items of p&l a/c).
reserve capital it is nothing but uncalled capital
COMMERCIAL BANKING IS THE DAY TO DAY
BUSINESS BANKING OF A CLIENT. INVESTMENT
BANKING IS ALL DEALING IN IPO, SHARES, AND
MUTUAL FUNDS.
profit=total revenue-total cost,which is the net icome of the
organisation gain can be anything over your cost,normally
revenue over your cost is treated as gain

46 What is mean by Journalizing ? Recording the transaction in an chronological order.

shares belongs to one company and mutualfunds are
difference between shares and combination of shares of difference companies. risk is very
47 mutual funds? high in shares and comparitively less in mutual funds
 Repo rate: 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
48 What is repo rate ? expensive.

Reverse repo: Reverse Repo rate is the rate at which

Reserve Bank of India (RBI) borrows money from banks.
Banks are always happy to lend money to RBI since their
money are in safe hands with a good interest. An increase in
Reverse repo rate can cause the banks to transfer more funds
49 What is reverse repo rate? to RBI due to this attractive interest rates
A reduction in the repo rate will help banks to get money at a
cheaper rate. When the repo rate increases borrowing from
50 what is the effect of repo rate RBI becomes more expensive.
BRS means Bank Reconciliation statement prepared by the
51 what is BRS company to balance the bank book ant the bankers statement
shows the sources from which cash has been generated and
52 What is a cash flow statement how it has been spent during a period of time.
what is the order for cash flow
53 statement
 tell the ratio where the
numerator and denominator
should contain one from asset
side and other from liabilities
54 side
what is leverage?how many
types of leverages are there and
55 explain
How to treat the provision for
bad debts which appear on
56 credit side of the p&L A/c.
What is mean by Dis-
57 investment
All liquidity ratios Current Assets Ratio = Current
Assets/current liabilites. Quick Ratio = Quick assets/ Current
liabilities. Absolute quick Ratio= Cash and Bank Marketable
securities/current liabilities.
Leverage is one of the keys for success of business.leaverage
means investment made by company through its eq. capital
or its loan.Types: Operating leverage, financial leverage,
combined leverage
Bad debts is the cause for creating provision for
baddebts,when a person feels the amount cannot be returned
then its going to be a baddebt,as a precautionary measure he
opens a provision for baddebts for fullfilling a minimum
amount with himself.so obviously we hae to show baddebts
on debit side of P&l a/c and provisions on credit side of p&l
a/c.
A reduction in capital investment.i.e.,A company or
government organization will divest an asset or subsidiary as
a strategic move for the company,planning to put the
proceeds from the divestiture to better use that garners a
higher return on investment.
 Derivatives are financial instruments whose value changes in
what is the meaning of response to the changes in underlying variables. The main
58 derivative. types of derivatives are futures, forwards, options,and swaps.
do you have debit and credit in
59 balance sheet No, Only Assets & Liabilities.
Operating costs are the recurring expenses which are related
to the operation of a business, or to the operation of a device,
60 What are operating Costs? component, piece of equipment or facility.
Capital expenditures (CAPEX or capex) are expenditures
creating future benefits. A capital expenditure is incurred
when a business spends money either to buy fixed assets or
to add to the value of an existing fixed asset with a useful
61 What is Capital Expenditure life that extends beyond the taxable year.

A significant but non-controlling ownership of less than

50% of a company's voting shares by either an investor or
another company.
If ABC Corp. owns 90% of XYZ inc, which is a $100
million company, on ABC Corp.'s balance sheet, there
would be a $10 million liability in minority interest account
to represent the 10% of XYZ Inc. that ABC Corp does not
62 what is minority interest own.
 the company which has 51% of its investment in another
comany,and also acquires controlling right on the
management inthe invested company.the holding company
can purchase up to 51% of its assets .the holding company
may paid minority interest to the other investors (i.e, 49% of
63 what is holding company? share holders)
buying or selling corporate stock by a corporate officer or
other insider on the basis of information that has not been
64 what is insider trading? made public and is supposed to remain confidential

A tax that is not assessed on and collected from those who

are intended to bear it. Unlike a direct tax,it cannot take
individual circumstances into account. Although levied on
producers, the burden of an indirect tax may be 'shift' to
consumers. Ex: value added tax, sales tax, payroll tax and
65 what is indirect tax? excise duties.

Inflation is defined as an increase in the price of bunch of

Goods and services that projects the Indian economy. An
increase in inflation figures occurs when there is an increase
in the average level of prices in Goods and services. Inflation
happens when there are less Goods and more buyers, this
will result in increase in the price of Goods, since there is
66 what is inflation? more demand and less supply of the goods.

what is public ltd company and
difference between public ltd
company and public sector
67 undertaking?
How many methods are there in
capital budgeting? what are
68 those.
what is the meaning of
69 impairment asset
what is the meaning of
preliminary expenses and how
70 you shown in balance sheet
A Public Sector Undertaking is a corporation in the public
sector in India, where management control of the company
rests with the Government, it can be Central Government or
the State Governments. Below given is a partial list of Public
Sector Undertakings of the Government of India: ONGC
Ltd. There are about 237 PSUs all over India. Whereas PLC
is privately owned.
Discounting : PBP,ARR and non discounting: NPV ,IRR,PI.
An unexpected or suddendeclinein theserviceutilityof
acapital asset, such as afactory,propertyorvehicle. This could
be theresultof physical damage to theasset,obsolescencedue
to technologicalinnovation, orchangesto
thelegalcode.Impairmentscan be writtenoff.
Expenses incurred prior to the incorporation of a company
are called preliminary expenses. They are ficticious assets
appearing on the ASSETS side of the Balance Sheet. Every
year a protion of them are written off from the profit and in
the Balance Sheet the total amount of preliminary expenses
is reduced by the amount of expenses written off.
 What is the meaning of capital Profit earned on the capital invested in the business is capital
profit and capitals receipt ? profit. Where as capital receipt means income on sale of
Both are same or any different assets. Both are not same. As Income is not a profit just it is
71 are there? a receipt.
A Trial Balance is a statement of ledger account balances
within a ledger,at particular instance. It's main purpose is to
72 What is the trial balance check mathematical\arthimetic accuracy of accounting.
Regulated by the Investment Company Act of 1940, mutual
funds are open-ended investment companies that pool
investors' money into a fund operated by a portfolio
What do you mean by Mutual manager. Types: Closed-End Mutual Funds. Open-End
73 Funds ? Types Mutual Funds.
swap is an derivative contract in which two parties agree to
seel or buy some underlying asset{ (e.g., stock, futures,
commodity, currency, index)] in future but price is decided
74 what is swaps? today

NSE the shares are divided in to two groups based on

volumes they made daily. if the transactions of the shares did
not reached as per the sebi rules they will comes under BE
ON NSE, some shares are listed and the remaining comes under Eq. By this we can
as EQ and some as BE, what concluded that BE shares have less liquidity compared to Eq
75 does it mean? shares
All the factory level expenses reduced from the sales (or)
76 what is cost of goods sold ? (purchases+all direct expenses)-sales=cogs
 deferred tax means it is a timing difference between the
companies and income tax act. Deferred tax liability arise
when the It act Depreciation higher than the companies act
depreciation. Deferred tax Asset arise when the It act
77 What is Deffered Tax? Depreciation lesser than the companies act depreciation.
A measure of a company's financial leverage calculated by
dividing its total liabilities by stockholders' equity. It
What do you mean by debt indicates what proportion of equity and debt the company is
78 equity ratio? using to finance its assets.( 1:2)

long term debt is given for a long period of time generally

what is the difference between for more than 5 years whereas short term debt is concerned
long term debt and short term with the debt less than 1 years. there is one more duration
79 debt? between 1 to 5 years is called Middle term debt.
Document that regulates a firm's external activities and must
what is meant by memorandum be drawn up on the formation of
80 of association? a registered orincorporated firm
what do you mean by fixed the asset which generate long term revenues more than one
81 asset? accounting OR Fixed Investment with Assets i.e. Plant &
Machinery, Electrical Installation, Vehicles, Land &
It is an economic institute within which take place sale and
purchase transactions of securities between subjects of
82 What is securities market? economy on the base of demand and supply.

83 What is operating cycle?
Which one is best to company
84 either debt or equity?
WHAT IS Z.B.B. ZERO
85 BASED BUDGET?
86 Stock Turnover Ratio?
Average time period between buying inventory and
receiving cash proceeds from its eventual sale. It is
determined by adding the number of days inventory is held
and the collection period for accounts receivable.
Whether a company issues debt or equity is a function of the
type of business we are considering. If it is a young or a
stratup company then it may not have the requisite cash
flows to service the debt or may get debt at a very high rate,
therefore the company would choose to raise cash through
equity. Whereas a well established business with stable cash
flows will be able to service its debt comfortably and would
therefore raise debt. Also the asset base of a company
determines how easily a company can raise debt or not.
A method of budgeting in which all expenses must be
justified for each new period. Zero-based budgeting starts
from a "zero base" and every function within an organization
is analyzed for its needs and costs.
This ratio is a relationship between the cost of goods sold
during a particular period of time and the cost of average
inventory during a particular period.(higher should be the
ratio) Stock Turnover Ratio =Cost of Goods/Average Stock