14 B AFM COMPANY ACCOUNTS
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the meaning of 'company accounts' in the context of corporate financial reporting?
Company accounts refer to the financial statements prepared by a company, including the balance sheet, profit and loss account, and cash flow statement, which reflect the financial position and performance of the entity.
What is 'authorised share capital' in a company's memorandum?
Maximum capital a company is permitted to raise.
What are the two broad categories of share capital shown in a company's balance sheet?
The two broad categories are authorised (registered) capital, which is the maximum capital a company can raise, and issued capital, which is the portion actually offered to the public or shareholders.
What is 'issued share capital' of a company?
Portion of authorised capital offered to the public.
What is meant by 'calls in arrears' in company accounts?
Calls in arrears represent the amount called up on shares but not yet paid by shareholders; it is deducted from the called-up capital to arrive at the paid-up capital.
What is 'subscribed share capital' in company accounts?
Part of issued capital that shareholders have agreed to take.
How is 'calls in advance' treated in a company's balance sheet?
Calls in advance is the amount received from shareholders before the call is officially made; it is shown as a liability under current liabilities and does not form part of paid-up capital.
What is 'paid-up share capital'?
Amount of subscribed capital actually paid by shareholders.
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