ACCOUNTING & FINANCE INTERVIEW QUESTIONS ( 261 - 270)

261  Convertible Debenture : A debenture which gives the holder a right to conversion wholly or partly in shares in accordance with term of issues.

262 Redeemable Preference Share : The preference share that is repayable either after a fixed (or) determinable period (or) at any time dividend by the management.

 

263 Cumulative preference shares : A class of preference shares entitled to payment of cumulates dividends. Preference shares are always deemed to be cumulative unless they are expressly made non-cumulative preference shares.

264 Debenture redemption reserve : A reserve created for the redemption of debentures at a future date.

265 Cumulative dividend : A dividend payable as cumulative preference shares which it unpaid cumulates as a claim against the earnings of a corporate before any distribution is made to the other shareholders.

266  Dividend Equalization reserve : A reserve created to maintain the rate of dividend in future  years.

267 Opening Stock : The term ‘opening stock’ means goods lying unsold with the businessman in the beginning of the accounting year. This is shown on the debit side of the trading account.

268 Closing Stock : The term ‘Closing Stock’ includes goods lying unsold with the businessman at the end of the accounting year. The amount of closing stock is shown on the credit side of the trading account and as an asset in the balance sheet.

269 Valuation of closing stock : The closing stock is valued on the basis of “Cost or Market price whichever is less” principle.

270 Contingency : A condition (or) situation the ultimate out come of which gain or loss will be known as determined only as the occurrence or non occurrence of one or more uncertain future events.