2011 Capital IQ Placement Papers - I:1.

In recommendations to the board of trustees a tuition increase of $500 per year, the president of the university said "There were no student demonstrations over the previous increases of $300 last year and $200 the year before". If the presidents statement is accurate then which of the following can be validly inferred from the information given: I. Most students in previous years felt that the increases were justified because of increased operating costs. II. Student apathy was responsible for the failure of students to protest the previous tuition increases. III. Students are not likely to demonstrate over new tuition increases. (a) I only (b) II only (c) I or II but not both (d) I, II and III (e) None Ans. (a) 2. When the democratic party holds presidency, the staff of the prime ministers deputies are composed I. One-fourth of democratic party members II. One-half of justice party members and one-fourth of conservative party members III. One-half of conservative party members and one-fourth of justice party members. (a) I only (b) I and II only (c) II or III but not both (d) I and II or I and III (e) None of these Ans. (a) 3. Which of the following is allowable under the rules as stated: (a) More than half of the staff within a given office belonging to a single party (b) Half of the staff within a given office belonging to a single party (c) Any person having a member of the same party as his or her immediate superior (d) Half the total number of staff members in all three offices belonging to a single party (e) Half the staff members in a given office belonging to parties different from the party of the top office

holder in that office. Ans. (a) 4. The office of the Army Chief passes from Conservative to Justice party. Which of the following must be fired. (a) The democratic deputy and all staff members belonging to Justice party (b) Justice party deputy and all his or hers staff members (c) Justice party deputy and half of his Conservative staff members in the chief of staff office (d) The Conservative deputy and all of his or her staff members belonging to Conservative party (e) No deputies and all staff members belonging to conservative parties.

5. what is nse freefloat capitalization Under the 'full-market capitalization' methodology, the total market capitalization of a company, irrespective of who is holding the shares, is taken into consideration for computation of an index. However, if instead of taking the total market capitalization, only the Free-float market capitalization of a company is considered for index calculation, it is called the Free-float methodology. 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. Thus, the market capitalization of each company in a Free-float index is reduced to the extent of its Free-float available in the market

6. what is exact difference between copy rights and patent rights? Copy RIGHT:-A right for your crative work. Trade mark:-Using symbol. (Wood land) PATENT:- For new invention.

7. what is by brs? Definition of 'Bank Reconciliation Statement' A form that allows individuals to compare their personal bank account records to the bank's records of the

individual's account balance in order to uncover any possible discrepancies Since there are timing differences between when data is entered in the banks systems and when data is entered in the individual's system, there is sometimes a normal discrepancy between account balances. The goal of reconciliation is to determine if the discrepancy is due to error rather than timing.

8. why the debit balane of p&l a/c shows in asset side of balancesheet Because all assets contain Debit balances as per the REAL RULE OF ACCOUNTING: WAT COMES IN IS DEBIT WAT GOES OUT IS CREDIT

9. what is minut minut is a plce where indian currency is printed by RBI

10. what is capitaemployed? Definition of 'Capital Employed'

1.

The total amount of capital used for the acquisition of profits. 2. The value of all the assets employed in a business. 3. Fixed assets plus working capital. 4. Total assets less current liabilities This is a term that is frequently used, but very difficult to define because there are so many contexts it can be used in. All definitions generally refer to the investment required for a business to function. By "employing capital" you are making an investment. Also known as "funds employed".

11. what do you mean by semi-variable cost A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable after the level is exceeded. Also known as a "semi-fixed cost

12. what do you mean by working capital? A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:

Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory). Also known as "net working capital", or the "working capital ratio".

13. wht is zero based budgetting 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. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one. ZBB allows top-level strategic goals to be implemented into the budgeting process by tying them to specific functional areas of the organization, where costs can be first grouped, then measured against previous results and current expectations

14. what is delapidation

decrepitude: a state of deterioration due to old age or long use

15. what are share warrants? A share warrant is a bearer document of title to shares and can be issued only by public limited companies and that to against fully paid up shares only. A share warrant cannot be issued by a private company, because the share warrant states that its bearer is entitled to a number of shares mentioned there in. It is a negotiable document and is easily transferable by mere delivery to another person. The holder of the share warrant is entitled to receive dividend as decided by the company. 16. what are the types of the Balance sheets ? A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets.[4] Larger businesses tend to have more complex balance sheets, and these are presented in the organization's annual report.[5] Large businesses also may prepare balance sheets for segments of their businesses.[6] A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.[7][8] Personal balance sheet A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, longterm assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt. Securities and real estate values are listed at market value rather than at historical cost or cost basis. Personal net worth is the difference between an individual's total assets and total liabilities US small business balance sheet A really small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business's equity is the difference between total assets and total liabilities

18. what is debentures, types of debentures What is a Debenture?

A Debenture is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument and repays the principal normally, unless otherwise agreed, on maturity. These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturities Debentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured. What are the different types of debentures? Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) Security Debentures can be classified on the basis of convertibility into: Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription. Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company. Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue. On basis of Security, debentures are classified into: Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company 19. what is meant by bridge finance A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations

These funds are usually supplied by the investment bank underwriting the new issue. As payment, the company acquiring the bridge financing will give a number of shares at a discount of the issue price to the underwriters that equally offsets the loan. This financing is, in essence, a forwarded payment for the future sales of the new issue

21. what is sharesplit and types of it explain? A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split. In the U.K., a stock split is referred to as a "scrip issue", "bonus issue", "capitalization issue" or "free issue

For example, in a 2-for-1 split, each stockholder receives an additional share for each share he or she holds. One reason as to why stock splits are performed is that a company's share price has grown so high that to many investors, the shares are too expensive to buy in round lots. For example, if a XYZ Corp.'s shares were worth $1,000 each, investors would need to purchase $100,000 in order to own 100 shares. If each share was worth $10, investors would only need to pay $1,000 to own 100 shares 22. what is the difference between take over and aquisation? 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 word merger, where both companies are willing to join together. An acquisition or takeover occurs when one company purchases another. Companies perform acquisitions for various reasons: they may be seeking to achieve economies of scale, greater market share, increased synergy, cost reductions or for many other reasons. The acquiring company would usually proceed with the corporate action by offering to purchase the shares from the shareholders of the target company. Often, a cash offer is made but sometimes the acquiring company may offer to trade its own shares in exchange for the target company's shares. Also, the difference between mergers and takeovers/acquisitions are that mergers involve two companies of roughly equal size that have decided to combine together to take advantage of expected advantages of a being larger company

23. what is the formula for profit margin?

by profit margin, I am assuming you mean gross profit. Gross Profit Margin Indicates the relationship between net sales revenue and the cost of goods sold. This ratio should be compared with industry data as it may indicate insufficient volume and excessive purchasing or labor costs. Formula Gross Profit / Net Sales Now if you mean Net Profit Margin (Return on Sales) which is a measure of net income dollars generated by each dollar of sales. Formula Net Income * / Net Sales * Refinements to the net income figure can make it more accurate than this ratio computation. They could include removal of equity earnings from investments, "other income" and "other expense" items as well as minority share of earnings and nonrecuring items.

24. what is deference between Revenue and Income Revenue is the amount earned from a companys main activities such as selling merchandise or providing services. A gain results from a peripheral activity, such as selling the old delivery truck. A gain is the amount received that is in excess of the assets carrying amount (book value). For example, if the company receives $3,000 for the truck, and its carry amount was $600, the company will report a gain of $2,400. Income is sometimes used instead of the word revenue: some people refer to the rent they receive as rent income. Generally, accountants use the word income to mean net of revenues and expenses. For example, a retailers income from operations is sales minus the cost of goods sold minus operating expenses

25. what perposs calculate the fixed assets?

#1 knowing about company financial position #2 To know the fixed assets value knowing about liquidation if we are not calculate the fixed asstes then we don't know wat is the actual cost of the comapny at the time of saling

Category SubCategory Location Company About Capital IQ:-

IT Placement Papers Hyderabad Capital IQ

Capital IQ was established in 1999. It is an innovative and rapidly-growing provider of integrated financial information and technology solutions. Capital IQ delivers comprehensive fundamental and quantitative research and analysis solutions to over 4,200 investment managers, investment banks, private equity funds, advisory firms, corporations, and universities worldwide. Why Capital IQ- Why should i Capital IQ?:Capital IQ has a distinct advantage of being nimble and innovative while having the resources of a large, successful organization. Capital IQ 's goal is to be the world's leading provider of financial and business information solutions. Capital IQ Platform, Compustat, ClariFI, Alphaworks, and MMD, It offer an array of powerful applications for desktop research, screening, real-time market data, backtesting, portfolio management, financial modeling, and quantitative analysis. 1. what is treasury stock The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations.

2. what are fictious assets? give some examples? Fictitious Assets are not assets which are tangible and visible like buildings, machinery , computer but the expenditure on some activity which is considered as a Capital expenditure instead of Revenue expenditure. When expenditure incurred amount is not debited to Profit and Loss A/C but shown as Fictitious asset and over a period the amount is writtenoff or debited to Pand L account. For example Share issue expenses by a Corporate, This is not debited to P& L A/c in the year in which it is incurred but debited in instalments as decided by Management over few years.eg: preliminary expenses , differed revenue expendeture

3. what is debenture ? A type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture. Debentures have no collateral. Bond buyers generally purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally considered risk free because governments, at worst, can print off more money or raise taxes to pay these type of debts.

4. what about the company background? 5.What is the entry for forfeiture of shares? 6. What is contingent event? A contingent event is a future event which is epected to happen. Generally it is a conservative way of thought. An event which might happen in future and that might be the cause of a irregular and nonrecurring expense for the company Contingent event may be happened or may not be happened in future bu company has to make provision for it because it support the principle of accrual accounting, where a company has to include all its future losses and neglect any expected future profit. This entry does not include in balance sheet but has to show in annual report.

7. What is Break Even Point?

In general, the point at which gains equal losses. 2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid. Also referred to as a "breakeven" For businesses, reaching the break-even point is the first major step towards profitability. 8. What is marginal costing? The extra cost incurred for an extra unit of output. 9. Difference between operating profit and netprofit. 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:

Often referred to as the bottom line, 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. 10. Company A is having operating cycle of 15days...b is having operating cycle of 10 days which company is having better position company B is having best operating cycle 11. what is deferred revenue expenditure? Deferred Revenue Expenditure:- In some cases, the benefit of a revenue expenditure may be available for period of two or three or even more years. Such expenditure is then known as "Deferred Revenue Expenditure" and is written off over a period of a few years and not wholly in the year in which it is incurred. For example, a new firm may advertise very heavily in the beginning to capture a position in the

market. The benefit of this advertising campaign will last quite a few years. It will be better to write off the expenditure in there or four and not in the first year. When loss of a specially heavy and exceptional nature is sustained, it can also treated as deferred revenue expenditure.But,it should be noted, loss resulting from transactions enterd into, such as speculative purchase or sale of a large quantity of a commodity, cannot be treated as a deferred revenue expenditure. Only loss arising from circumstances beyond one's control can be so treated. 12. what is assets Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, andretained earnings. From an accounting perspective, assets are divided into the following categories: current assets (cash and other liquid items), long-term assets (real estate, plant, equipment), prepaid and deferred assets (expenditures for future costs such as insurance, rent, interest), and intangible assets (trademarks,patents, copyrights, goodwill). 13. what is the meaning of the capital ique A research and analysis company that offers a variety of software and data feeds to thousands of investment managers, investment banks, private equity funds, advisory firms, corporations and universities. Its major products are the Capital IQ platform, which provides fundamental analysis, and Compustat, Money Market Directories (MMD), Xpressfeed and SystematIQ, which provide quantitative research.

A division of Standard & Poor's, Capital IQ was founded in 1998 and has offices in major cities around the globe. It backtesting, portfolio management, financial modeling and quantitative analysis. 14. what is brench finance please tele me imediatly Finance is a commercial activity for providing funds and capital Its bridge finance 15. define finance The management of large amounts of money, esp. by governments or large companies. Account: 1. A record of financial transactions for an asset or individual, such as at a bank, brokerage, credit card company, or retail store. 2. More generally, an arrangement between a buyer and a seller in which payments are to be made in the future.

16. what is the difference between npv and irr method of capital budgeting and which one is better? NPV stands for net present value where as I.R.R stands for internal rate of return.N.P.V is the difference between present value of cash inflow and present value of cash outflow or initial investment.I.R.R is the rate that equates present value of cash inflow with cash outflow.N.P.V is better because it takes into consideration the time value of money. 18. what is float discuss? The total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares. 2. A float can also refer to a small portion of the money supply representing a balance that is simultaneously present in a buyers and a payers account. A float results from the delay occurring between the time that a cheque is written and the money actually being deducted from the writer's account. These balances are temporarily double counted as part of the overall money supply.

19. Company why should issue Debentures and shares, Which one should issue better for company and why? To raise its Finance most of the companies need to issue Debentures & Shares.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 dilutes it results decrease in EPS 20. what is fixed cost? A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost.

21. In Banking industry difference between interest income and interest expenses is called as . Net interest income ............ 22. what is the effect of crr hike on market? if the crr is increased it will effect the lending rates ......inturn interest on loans will be increased......and

interest on deposits will be reduced CRR increase will suck liquidity from the market.... it will help to tame inflation....CRR is widly used tool to control the inflation for RBI

23. how cash enters in market? sale and purchase of securietes ..buying and selling activities 24. What Are Hedge Funds? An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors keep their money in the fund for at least one year

25. What do you understand by Private Equity? What is the difference b/w PE and Venture Capital? Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet. The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company

Technically, venture capital is just a subset of private equity. They both invest in companies, they both recruit former bankers, and they both make money from investments rather than advisory fees. But if you take a look beneath the surface, youll see that theyre significantly different. Definitions Technically, the term private equity refers to money invested in private companies, or companies that become private through the investment. Most people in finance, though, use private equity to mean firms that buy companies through leveraged buyouts (LBOs) so thats how well use it here. There are a couple other categories of PE, so well look at those at the end of this article.

What They Do While both PE firms and VCs invest in companies and make money by exiting selling their investments they do it in different ways: Company Types: PE firms buy companies across all industries, whereas VCs are focused on technology, bio-tech, and clean-tech. % Acquired: PE firms almost always buy 100% of a company in an LBO, whereas VCs only acquire a minority stake less than 50%. Size: PE firms make large investments at least $100 million up into the tens of billions for large companies. VC investments are much smaller often below $10 million for early-stage companies. Structure: VC firms use only equity whereas PE firms use a combination of equity and debt. Stage: PE firms buy mature, public companies whereas VCs invest mostly in early-stage sometimes pre-revenue companies. Side note: Equity above refers to using cash rather than debt, not to shareholders equity, equity value, or anything else (the terminology can get confusing). Risk & Return VCs expect that many of the companies they invest in will fail, but that at least 1 investment will generate huge returns and make the entire fund profitable. Fred Wilson expects that out of 20-25 investments in his fund, 5-10 will fail, 1 will be a home run, 4-5 will produce solid returns, and the rest will be a wash. Venture capitalists invest small amounts of money in dozens of companies, so this model works for them. But it would never work in PE, where the number of investments is smaller and the investment size is much larger if even 1 company failed, the fund would fail. So thats why they invest in mature companies where the chance of failing in 3-5 years is close to 0%. Return? You might now be wondering, So which model actually produces higher returns? There is a lot of controversy over this one, but returns in both industries are much lower than what investors claim to achieve. Most VCs and PE firms target 20% returns, but VCs have earned less than 10% returns over a 5-year period and many pension funds that invested in PE firms have also seen sub-10% returns. One difference is that in venture capital, returns are heavily skewed to the top firms: if you think about their business model, that makes a lot of sense invest in the 1 big winner and youre set. Plus, the best deals in VC almost always go to the top firms because the best deals have always gone to the top firms. That happens in PE as well, but you can earn great returns without investing in the largest and most well-known companies.

--------------------------------------------------------------------Capital IQ Placement Paper January 2012:-

1. The difference between the compound interest and the simple interest on a certain sum of money at 5% per annum for 2 years is Rs. 1.50. Find the sum. (a) Rs. 800 (b) Rs. 1200 (c) Rs. 400 (d) Rs. 600 (e) None of these Ans: ( d ) Rs. 600 2. 7589 ? ? = 3434 (a) (b) (c) (d) (e) 3721 4155 3246 11023 None of these

Ans:( b ) 4155 3. Digits of first place and third place are interchanged of the numbers 349, 483, 766, 598, 674 and then the new numbers are arranged in ascending order. Which would be the fourth number ? (A) 483 (B) 766 (C) 674 (D) 598 Ans : (D) 4. A circle and a rectangle have the same perimeter. The sides of the rectangle are 18 cm and 26 cm. What will be the area of the circle? (a) 88 cm2 (b) 1250 cm2 (c) 154 cm2 (d) 128 cm2 (e) None of these

Ans: ( e ) None of these 5. 40.83 x 1.02 x 1.2 = ? (a) 49.97592 (b) 41.64660 (c) 58.7952 (d) 42.479532 (e) None of these Ans:( a ) 49.97592 6. Rs. 1581 is divided among A, B and C in the ratio 10 : 15 : 6. What is the share of B? (a) 306 (b) 765 (c) 700 (d) 510 Ans:- B 7. In a row of children facing North, Bharat is eleventh from the right end and is third to the right of Samir who is fifteenth from the left end. Total how many children are there in the row ? (A) 29 (B) 28 (C) 30 (D) 27 Ans : (B) 8) find the middle term 5,15/2,..,25/2,15 a) 10 b) 9 c) 23/2 d) 8 e) none of these 9) A man can swim downstream at 6km/hr and upstream at 2km/hr his speed in still water is

a) 4 km/hr b) 2 km/hr c) 6 km/hr d) 1 km/hr 10) sum of the roots of a quadratic equation ax2+bx+c=0 n the is equivalent to so and so n a/b ,b/c c/a these r in which progression(I dont remember question properly) a) AP b) GP c) HP d) None of these Q 1 What is the difference between charge and appropriation ?

Ans: THE DIFF BETWEEN CHARGE AND APPROPRIATION CAN BE STATED WITH AN Example: for charge.. DEPRECIATION CAN BE AN EXAMPLE.. whether there is a profit or loss the depreciation is charged to the profit and loss account..for appropriation.. reserves or tax can be taken as an example.. it can be only appropriated when there is a profit.. otherwise there is no appropriation.. for charge let there be a profit or loss it is valid.. appropriation is only valid when there is a profit. Q2. What is bank reconciliation statement? Ans: A form that allows individuals to compare their personal bank account records to the bank's records of the individuals account balance in order to uncover any possible discrepancies. Q3.What is nifty? Ans: Nifty is an indicator of all the major companies of the NSE.Actual this is stock exchange place where all company and investors see the actual gain/loss which they have got. Q4.What do you mean by margin of safety? Ans: IT IS THE DIFFERENCE B/W ACTUAL SALES&BREAK EVEN SALES.IT CAN BE REPRESENTED BY THE FOLLOWING FORMULA. MARGIN OF SAFETY=ACTUAL SALES - BREAK EVEN SALES Q5.Difference between Reserve capital and capital reserve? Ans: Reserve capital if that part of reserve which may use on

the event of winding off the company .... but capital Reserve is a part of profit....... Q6.What is share premium? Ans:Share Premium means excess issue price over the face value. Q7.What is debt equity ratio? Ans: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation. Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements as well as corporate ones. Q8. What is ADR DEFINE ?Ans: It is American Depository receipt issued by non American company to raise capital in US Q9. Tell me about some accounting concepts? Ans: There 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.

Q10.What are bills of exchange? Ans: Definition 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. Q11.What is private placement? Ans: The sale of securities to relatively small number of selected investors as a way of rising capital. It was an opposite of public issue. Q12.What is net worth ? Ans: The amount by which assets exceed liabilities,This term can be applied to companies and individuals

Q13.What is zero-base budgeting? Ans: A method of budgeting in which all expenses must be justified for each new period. Zerobased budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one. ZBB allows top-level strategic goals to be implemented into the budgeting process by tying them to specific functional areas of the organization, where costs can be first grouped, then measured against previous results and current expectations.

Q15.What is the meaning of the capital IQ? Ans: A research and analysis company that offers a variety of software and data feeds to thousands of investment managers, investment banks, private equity funds, advisory firms, corporations and universities. Its major products are the Capital IQ platform, which provides fundamental analysis, and Compustat, Money Market Directories (MMD), Xpressfeed and SystematIQ, which provide quantitative research

Q16.What is the difference between single entry system &double entry system? Ans: In the single entry system only one aspect of the business transaction will be recorded in the books of accounts. but in the double entry system both aspects of the business transaction will be recorded, for example i am selling the machinery to kiran.in this two accounts are involved. i,e:kiran a/c and machinery a/c.so in the single entry system we will record only kiran a/c as a

debtorand we dont record the a/c regarding the machinery.but in the double entry system we will record both aspects of the transaction.it means we will record kiran a/c ---dr to machinery a/c. so it wil give complete information about the business transaction. Q17. What Amount taken if company get asset free? Ans: As per accounting rule if cost of asset is below 5000 you sgould book it in to your books of account as Re/- 1/.