1. The document discusses various finance-related topics including defining finance, preparing a bank reconciliation statement, factors affecting financial planning, innovations in finance, differences between debentures and shares, types of debentures, and ratio analysis. 2. Ratio analysis helps a company by defining whether it is profitable, meeting short-term obligations, and whether shareholders are satisfied. Key ratios include liquidity, leverage, activity, and profitability. 3. Being a finance manager, one would review past financial statements, discuss growth expectations with management, prepare provisional financial statements, and identify cost-cutting opportunities to forecast finances.

1. Okay byeeeeeee<br />NIce to have a chat wid you<br />1. Define finance?<br /> Finance is nothing but money and by the meaning of financial management is to manage the financial matters<br />procurement of funds and proper allocation of available funds in efficient manner to maximize returns<br />Finance is related with cost, time, money and risk.It deals with matters related to money and markets, resousce allocation amd its management are <br />tha part of this<br />finance means it is a stydy of money<br /> <br />2. y did we prepare BRS<br />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....<br />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<br />“To show the difference between the cash book and pass book”<br />3. What factors affect financial plan?<br /> “ Economic & government policies”<br />changes in taxation legislation<br />fluctuating interest rates<br />rising inflation and unemployment<br />economic cycles<br />investment returns<br />4. what are the innovations in the finance,who are the major players in finance & future outlook in the finance?<br /> 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.<br />5. Differences between Debentures and shares<br />1. debenture are the creditors to the company.<br /> share hodlders are the owners to the company<br />2. debenture holders they dont have voting power.<br /> Share holders have voting rights.<br />3. Debebture interest rate is paid at predetermined fixed rate.<br /> Dividend on share depends on profits of the company;<br />6. Types of Debentures<br />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.<br />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 deemed 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.<br />Secured Debentures: These are those debentures which are secured against the <br />assets of the company which means if the company is closing down its <br />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 created 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 the interest thereon, they have the right to recover the same from the assets mortgaged.<br />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.<br />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 convertible into shares at the option of the holders after a specified period. The rate of exchange of debentures <br />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. <br />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.<br />Redeemable Debentures: These debentures are issued by the company for a specific period only. On the expiry of period, debenture capital is redeemed or paid back. Generally the company creates a special reserve account known as quot;
Debenture Redemption Reserve Fundquot;
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.<br />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 debentures. The principal amount is repayable only at the time of winding up of the company. however, the company may decide to repay the principal amount during its lifetime.<br />7 what is float discuss?<br /> when the rate & prices are not stable that is float<br />Float in stock market: Float is the total number of equity shares that are ready for free trade in secondary market.<br />2. Float is the period between opening and closing of a transaction<br />3. Float in Companies Act 1956: Float is the amount of money to be raised for the company<br />8. Company why should issue Debentures and shares, Which one should issue better for company and why?<br /> <br /> to raise capital it issue debentures and shares but if interest is low, company should go for issuing debentures <br />because if it issue shares ownership dilutes it results decrease in EPS<br /> The company raises capital/finance using 2 methods.<br />1)Internally.<br />2)Externally.<br />Internally the finance is raised by the issue of the debentures that is raising the money on intrest from the borrowers.<br />Externally the finance is raised by the issue of the shares,preference shares and equity shares.<br /> 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<br />9.wht u mean by equity share<br /> 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 earning profit then the shareholders will not receive any dividend or interest untill the company not start making profit<br /> <br />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.<br />10. What does planning and forecasting mean?<br /> planning: making a path to an action<br /> Forecasting: predicting future<br />11. what is risk assessment<br /> Risk assessment is a step in a risk management process. Risk assessment is the determination of quantitative or qualitative value of risk <br />12. WHAT DO MEAN BY OPERATING PROFIT<br /> 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 quot;
earnings before interest and taxquot;
(EBIT).<br />Calculated as:<br />Operating Profit = operating revenue - operating expenses<br />14. EBIT stands for?<br /> Earnings before Interest and taxes<br />15. what is the effect of crr hike on market?<br /> 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 with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.<br />16. In Banking industry difference between interest income and interest expenses is called as .............<br /> Net interest income<br />17. What are the key steps involved in formulating treasury policy of a firm?<br /> Investment, cahs mangement, etc<br />18. what is del credare commission<br />it is a payment made by principal to sales agent for<br />collecting the amount of goods sold by agent on credit basis.<br />19. what is difference between primary market & secondary market?<br />PRIMARY MARKET: IT IS ALSO CALLED NEW ISSUE MARKET.HERE INVESTOR WILL BUY SECURITIES BUT CAN'T SELL THERE.<br />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.<br />20. what Are Hedge Funds?<br /> Hedge funds are risk free funds.<br />Hedge is using for risk avoiders. so these hedging is give higher protection with minimum gain for EX; LAND INVESTMENT, GOLD INVESTMENT<br />21. What is the difference between commercial banking and investment banking?<br /> <br />22. what is sensex,nifty and what is difference between those two<br /> 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 “<br />23. Among fixed and floating exchange rates which is the best for india? how?<br /> 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.<br />24. What are the responsibilities of financial manager?<br />The finanace manager has to deal with the mainly or generally with thw 4 A's, these are<br />1)Anticipation of fund (i.e. capitalisation)<br />2)Acquisition of fund(i.e. Raising of funds)<br />3)Allocation of fund(i.e. investment decision)<br />4)Assessment of fund(i.e. evaluation of financial <br />activities)<br />25. What are GAAP?<br />GAAP MEANS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.IT INCLUDES ALL THE POLICIES,CONVENTIONS,CUSTOMS,PRINCIPLES FOLLOWED WHILE PREPARING ACCOUNTING BOOKS.THESE ARE<br />1 BUSINESS ENTITY CONCEPT<br />2 GOING CONCERN CONCEPT<br />3 MONEY MEASUREMENT CONCEPT<br />4 HISTORIC COST CONCEPT<br />5 DUAL ASPECT<br />6 MATCHING CONCEPT<br />7 SUBSTANCE OVER FORM<br />8 CONSISTENCY<br />9 CONSERVATISM<br />26. what is BSE? tell me the details about that?<br /> 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 quot;
The Native Share & Stock Brokers Association.quot;
Bombay Stock Exchange is the first stock exchange in India to 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<br />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.<br />27. On what basis we take 30 scrips in BSE Index For calculating BSE sensex Index ???<br /> On the basis of value of market capitalization of the company<br />28. What is an equity stake/ total equity ?<br />29. what is the difference between finance and accounting,how they are different with other.?<br />finance is the management of fund. planing of fund flow. how we will get fund & where we will expend that.<br />accounting is managment of transctions. in accounting we will manage records of transuctions. book keepings.<br />30. how ratio analysis can help to the company.<br /> 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<br />31. Types of ratios<br />liquidity ratio:<br /> 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.<br />2 leaverage ratio: cost and repayment of long term obligation. like debt measures the firm ability to pay interest equity ratio, interest coverage ratio<br /> <br /> <br />3. activity ratio:<br /> Measures the efficiency with which the resources of a firm have been employed. like stock turnover ratio,debtor turnover ratio.<br />4. profitability ratio:<br /> Measures the overall performance and effectiveness of the firm. like net profit ra<br />32. what is the difference between JOURNAL ENTRY & LEDGER<br /> Journal is primary entry book which shows all primary transaction first made in journal & suggest which a/c should be credited or which a/c should be debited.<br /> 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.<br />34. Being the finance manager being of a company how will you make finance forecasting?<br /> 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 current 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 expected profit.<br />35. why are you doing job?<br /> 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.<br />36. How you convince the customer?<br /> 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 .<br />37. Why REPO rate is being hiked to control Inflation ?<br />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.<br />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.<br />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.<br /> <br />38. what is the difference betwen p & l a and income & expenditure statement?<br /> 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 P/L a/c for a profitable organigation & I/E a/c for a nonprofitable organigation<br />39. What is the entry for deprecation?<br /> deprciation a/c...Dr<br /> To Asset A/C<br />40. Different types of insurance 1 life insurance <br /> 2 genteral insurance <br />41. what is crossover rate?<br /> 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.<br />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?<br /> 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.<br />43. Now a day’s which type of fund is best in share market?<br /> 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 invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund. <br />44. what is the meaning of portfolio management? what comes under portfolio management?<br /> 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<br />under PF investments.<br />Security analysis,<br />Security selection,<br />Portfolio analysis,<br />Portfolio selection,and<br />Portfolio evaluation comes under portfolio management...<br />and minimum risk.<br />45. What is the difference between Indian GAAP and Accounting Standards.<br /> GAAP Stands for Generally 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 export persons.Generally Accepted Accounting Principles means just like Accounting Concept which means every person can accept this principles<br />46. What do you mean by favorable balance of trade<br /> Having exports which exceed imports<br />47. whats Dollex 30?<br /> DOLLEX-30 is the dollar version of BSE Sensex,<br />48. whats Derivative?<br /> 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 derivatives, with the most common being swaps, futures, and options. Derivatives are a form of alternative investment.<br />49. SAP FI Accounts Payable (AP) End User Documents<br /> <br /> 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<br />50. What is BEP? How is it calculated?<br />BEP=break even point.....<br /> and formula.... fixed cost<br /> ----------X100<br /> p/v ratio<br /> <br />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 quot;
broken evenquot;
. Therefore has not made a profit or a loss<br />51. What is deferred revenue?<br /> 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.<br />52. If private comapny will takeover the public company it will come under which type of takeover<br />'reverse takeover<br />53 nikkie stock exchange belongs to which country<br /> japan stock exchange<br />54. full form of sensex?<br /> IT IS A SENSITIVITY INDEX OF BSE<br />55. WHAT IS THE DIFFERENCE BETWEEN Speculation and Investment?<br />investment:1.the investor invest for long term gain purpose<br />2. the investor hold securities for long period.<br />3.risk is less as compare to speculation <br />4.the rate of return is less as compare to speculation<br />speculation:1.the investor invest for short term gain <br />purpose<br />2.the investor hold securities very short period say 1 or 2 <br />days<br />3.risk is high<br />4.rate of return is more<br />5.it invole buying and silling of securities<br />56. WHAT IS THE dIFFERENCE BETWEEN ASSETS ALLOCATION AND SECURITY SELECTION?<br /> allocating the available asst of a company for maximum <br />utilization<br />investing the available funds to gain maximum profit.<br />57. What is Shares Split?<br /> 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<br />58. WHAT IS DIFFERENCE BETWEEN BANK RATE & REPO RATE<br />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. <br />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. <br />Bank Rate <br />This is the rate at which RBI lends money to other banks (or financial institutions) <br /> 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. <br /> 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) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.<br />58. what is the internal rate of return(IRR) of eurekaforbes?<br />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.<br />NPV = Cash Inflow - Cash outflow<br />NPV = Zero<br /> <br />59. What is Credit Risk?<br />Credit Risk is the type of risk which arise when the borrower fails to meet the obligation to the lender on the date of maturity of a particular loan whether willfully or unwillingly by way of principal or interest. Credit risk <br />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). <br />The following are the types of credit risk<br />1) willgful default<br />2) Time Risk<br />3) Sovering Risk<br />60. What is Market Risk?<br />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<br />prices<br />The values of marketable securities fluctuate every day. Sometimes these changes in value have nothing to do with the real quot;
valuequot;
of the investment but instead are influenced by a variety of unrelated events such as political changes, congressional actions, US and foreign activities<br />61. What are the common mistake made in Invest ment?<br /> 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.<br />62. What is Merger? What is Acquisition? What are motive behind mergers And acquisitions?<br />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<br />63.. hat is the Risk of investment?<br /> 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 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<br />64. what is management?<br />Management is the art of getting things done through other people,and it includes the effective utilisation of factors of production. men, machine, material, money etc.)<br /> 65. How can you create a secret reserve?<br />A secret reserve is created by the following methods:<br />1. By under valuation of assets much below their cost or market value, such as investment, stock in trade, etc.<br />2. By not writing up the value of an asset, the price of which has permanently gone up.<br />3. By creating excessive reserve for bad and doubtful debts or discount on sundry debtors.<br />4. By providing, excessive depreciation on fixed assets.<br />5. By writing down goodwill to a nominal value.<br />6. By omitting some of the assets altogether from balance <br />sheet.<br />7. By changing capital expenditure to revenue account and thus showing the value of assets to be less than their actual value.<br />8. By overvaluing the liabilities.<br />9. By the inclusion of fictitious liabilities.<br />10. By showing contingent liabilities as actual liabilities<br /> <br /> 66. what are the shortcut keys of operating share terminal?<br /> THE FOLLOWING ARE THE SHORT CUTS KEYS .<br />F 1 BUY ORDER<br />F2 SELL ORDER<br />F3 ORDER BOOK <br />F5 BEST 5 BIDS <br />F8 TRADING CONFIRMATION<br />67. what is post-issue capital of the company<br />Post-issue activities:- It includes collection of application forms, screening of applications, deciding allotment procedure, mailing of allotment letters,, share certificates and refund orders<br />68. What is Repo?<br />repo it is the rate set up by rbi.at this rate the rbi lending money to banks.<br />69. Types of Lease?<br />two types of lease are their<br />1. operating lease<br />2. financial lease<br />70. what is the difference between prepaid expenses and preliminary expenses?<br /> 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<br />71. what is the difference between stock & shares,<br /> stock and shares is same<br />72. Why the company prefering prefence capital rather than debenture capital?<br /> 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 <br />next years profit of the companies in case of cumulative preference shares. so for all this reasons company issue preference shares instead of debentures.<br />73. What is an auction ? Why does it occur<br /> 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 any mechanism or set of trading rules for exchange.<br />74. What is the Difference between hire purchase and a finance Lease<br /> In Hire purchase you buy the goods whereas in leasing you <br />take the goods on lease.<br />75. What Is A Mutual founds<br />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.<br />77. How the price of a stock is calculated in Indian stock market (NSE or BSE)?<br /> 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.<br />78. whts d difference between wealth, cash n money?<br /> 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.<br />79. DESCRIBE A FAILURE IN PROFESSIONAL OR ACADEMIC LIFE?HOW TO OVERCOME<br />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.<br />80. NP?<br />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.<br />81 , What is GDR?<br /> 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 Bonds of issuing company. Among the Indian Companies, Reliance Industries Ltd. was the first company to raise funds through a GDR issue.<br />82 difference Between Cost Accounting and Financial Accounting?<br />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.<br />83.wht is preference share capital..?<br />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 <br />preference over equity share holdrs during the time of payment of dividend and during the time of winding up of the company.<br />84 What are Subsidiary Books?<br />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.<br /> 85. Take Over Means?<br />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.<br /> <br />86. What is RONA?<br />RONA means return on net Assets<br />87. what is leverage?<br /> The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy<br />88. what is difference between purchases register and purchases <br />books<br />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 the cash books if it is a credit purchase means that will be entered in the purchase book.i hope i help you<br /> <br />89. What is Profit?<br /> In simple terms profit is the diffeence between sales and cost incurrred by the organisation.<br />Profit = Sales or turnover - Cost or expenses<br />90. what is Royalty? And how it is being paid. What is the general terms and conditions for royalty..?<br /> <br /> 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<br />91. Profit is a Liability or asset?<br /> 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.<br />92. What is Debenture?<br /> 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.<br />93. what is meant by index in stock marketing<br /> Index in stock marketing means that shows current market <br />position related to companies.<br />94. What is Profit?<br /> <br /> In simple terms profit is the diffeence between sales and cost incurrred by the organisation.<br /> Profit = Sales or turnover - Cost or expenses<br />95. difference between options and futurs<br /> The primary difference between options and futures is that<br />options give the holder the right to buy or sell the<br />underlying asset at expiration, while the holder of a<br />futures contract is obligated to fulfill the terms of<br />his/her contract.<br />in case of options, for a buyer (or holder of the option),<br />the downside is limited to the premium (option price) he has<br />paid while the profits may be unlimited. for a seller or<br />writer of an option, however, the downside is unlimited<br />while profits are limited to the premium he has received<br />from the buyer.<br />96. what is derivative?<br />Derivative is a financial instrument whose value is derived<br />from another asset or commodity. Derivatives are of 4<br />types.. Options, Forwards, Futures and Swaps.<br />97. <br /> <br /> <br /> <br /> <br />