Accounting and Finance Basics

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What is the value at which forfeited shares are re-issued?

Book value

Face value

Market value (correct)

Nominal value

What is the term for profit earned by a company before its incorporation?

Accumulated profit

Pre-operating profit

Deferred profit

Pre-incorporation profit (correct)

What is the process of exchanging debentures for equity shares of the company known as?

Amortization

Redemption

Conversion (correct)

Refunding

What is the primary purpose of preparing final accounts?

To assess profitability and financial position Signup and view all the answers

What is the characteristic of zero-coupon debentures?

No interest payments Signup and view all the answers

What financial instrument represents ownership in a company?

Equity shares Signup and view all the answers

At what value are forfeited shares typically re-issued?

Their par value Signup and view all the answers

What type of profit is earned by a company prior to its incorporation?

Pre-incorporation profit Signup and view all the answers

What is the process of exchanging debentures for equity shares known as?

Conversion Signup and view all the answers

What type of shareholders are debenture holders considered as?

Creditors Signup and view all the answers

Where are the terms and conditions of preference share redemption usually outlined?

Prospectus Signup and view all the answers

What part of the balance sheet does shareholders' equity represent?

Assets - Liabilities Signup and view all the answers

Accounting and Finance Basics

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Questions and Answers

What is the value at which forfeited shares are re-issued?

What is the term for profit earned by a company before its incorporation?

What is the process of exchanging debentures for equity shares of the company known as?

What is the primary purpose of preparing final accounts?

What is the characteristic of zero-coupon debentures?

What financial instrument represents ownership in a company?

At what value are forfeited shares typically re-issued?

What type of profit is earned by a company prior to its incorporation?

What is the process of exchanging debentures for equity shares known as?

What type of shareholders are debenture holders considered as?

Where are the terms and conditions of preference share redemption usually outlined?

What part of the balance sheet does shareholders' equity represent?

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