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Question
Explain the following term/concept.
Deposit
Solution
Deposit is a short term source of finance for the company and it is used to meet the short term working capital requirements of the company. The company cannot accept deposits for a period of less than 6 months or more than 36 months. The company is liable to pay regular interest on the deposits at a fixed rate along with the principal amount on maturity.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
A Company cannot accept deposit for more than ______ months.
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A company cannot accept deposit for less than ______ months.
Select the correct answer from the options given below and rewrite the statement.
Deposits are ______ loans of the company.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Depositors | 1) Fixed |
| b) Rate of Interest on Deposits | 2) Evidence of ownership |
| c) Deposit Receipt | 3) Debtors |
| 4) Creditors | |
| 5) Evidence of deposit | |
| 6) Fluctuating |
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Return on investment on deposit.
Write a word or a term or a phrase which can substitute the following statement.
Instrument for payment of interest on deposit.
Write a word or a term or a phrase which can substitute the following statement.
Return of deposits on maturity date.
Write a word or a term or a phrase which can substitute the following statement.
Maximum period of deposits.
State whether the following statement is true or false.
A Private Company cannot accept the deposits from the general public.
Complete the sentence.
Depositors are the ______ of the company.
Answer in one sentence.
Who is depositor?
Answer in one sentence.
What is the return on deposit?
Correct the underlined word and rewrite the following sentence.
Depositors are owners of the company.
Correct the underlined word and rewrite the following sentence.
Deposits are the internal source of financing.
Arrange in proper order
- Renewal of Deposit
- Acceptance of Deposits
- Deposit Receipt
Explain the following term/concept.
Interest on Deposit
Justify the following statement.
The Company Secretary should take certain precautions while corresponding with depositors.
State whether the following statements are true or false.
A Private Company can accept the deposits from the general public.
