Proposed dividend is another important source of financing temporary working capital like the provision for taxation. It also provides funds for financing the time gap between dividend proposed and the dividend distributed to the shareholders.

On the issue of debentures, it is a mandatory requirement for companies to transfer the specific amount to Debenture Redemption Reserve(DRR). DRR is created out of profits of a company and is debited to statement of profit and loss(which means profit is reduced). Now, at the time of redemption of debentures, DRR is to be transferred to general reserve to give effect to earlier reduction in profit. So, DRR account is closed by transfer to general reserves which means same as increase in profits.

The main objective of financial statement analysis is to provide information about the financial position, performance and changes in financial position of a company that is useful to a wide range of users in making economic decisions.

Preference shares are shares which are preferred over common or equity shares in payment of surplus or dividend i.e preference shareholders are the first to get dividends in case the company decides to pay out dividends.

Different types of Preference Shares are as follows:
1) Cumulative Preference Share In case where a company does not declare dividends for a particular year, they are carried to next year. They are treated as arrears.And a preference share is said to be cumulative in a case when the arrears pertaining to dividend are cumulative in nature and such arrears are cleared before any dividend payment to equity shareholders.
2) Non- Cumulative Preference shares: As the name suggests, it does not accumulate dividends. Dividend skipped by the company are not paid, which means they have the right to avail dividend from the profits earned from that particular year.
3) Redeemable Preference shares: These are shares which can be redeemed or repaid after the fixed period as issued by the company or even before at the option of the company. .
4) Non-redeemable These shares cannot be redeemed during the life of the company.
5) Convertible Shares Shares can be converted into equity at the option of the holder after the stated tenure. 6) Non-convertible shares Shares which cannot be converted to equity are called non convertible shares.
7) Participating shares Such shares have the right to participate in surplus profits of the company at the time of liquidation after the company had paid to other holders.
8) Non-participating Preference Shares Preference shares, which have no right to participate in the surplus profits or in any surplus on liquidation of the company, are called non-participating preference shares.

An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are reported on a company's balance sheet, and they are bought or created to increase the value of a firm or benefit the firm's operations