Company Accounts - I
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 71 rapid-fire Q&A cards.
What is a Joint Stock Company?
Association of persons contributing money to common stock, created by law for common purpose.
Why must bankers understand Company Accounts?
Lending decisions, KYC, working capital limits depend on capital structure and shareholding pattern.
Define artificial person in company context.
Company created by law, distinct from members; can contract, sue, be sued independently.
What is perpetual succession?
Company existence unaffected by member death, insolvency, or insanity.
What is limited liability?
Member liability restricted to face value of shares held; personal assets safe from company debts.
Distinguish private company from public company membership.
Private: max 200 members, min 2; Public: unlimited members, min 7.
What is a Statutory Company?
Created by special Act of legislature, government-owned, independent legal status. Examples: LIC, RBI, SBI.
What are the two kinds of share capital under Companies Act 2013?
Equity shares with voting rights; Preference shares with fixed dividend and no voting rights.
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