Learning Unit- 2
Instructions to Faculty
Recap on Learning Unit-I
- Before commencement of Learning Unit II, the Faculty may spend approximately
half an hour to make a recap of the Learning Unit-I with reference to the following
10 questions:- What is the objective of Trading Account?
- What is the Objective of Profit and Loss Account?
- What are the differences between the (i) Authorised Capital (ii) Issued
Capital and (iii) Subscribed Capital? - Who are the real owners of a company?
- What is the difference between the inside liabilities and the outside liabilities?
- What are solvency ratios?
- What are liquidity ratios?
- What is gearing? What is low gearing and what is high gearing?
- What is debt equity ratio?
- What is an operating cycle?