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WorksheetsIssue and Redemption of Debentures
Total questions: 10
Worksheet time: 2hrs 40mins
Debentures represent the
Long-term Borrowings of a Company
The Investment of Equity- Shareholders
Directors share in a Company
Short - Term Borrowings of a Company
Debenture holders are
Owners of the Company
Promoters of the Company
Debtors of the Company
Creditors of the Company
Zero Coupon Bonds are Issued
At Zero interest rate
With Specified Rate of Interest
Without Specified Rate of Interest
None
Interest Payable on Debenture is
an Appropriation of profits of the Company
a charge against profits of the Company
transferred to sinking fund investment account
transferred to general reserve
A Debenture Holder is entitled to
Fixed Dividend
Share in Profit
Voting rights in the Company
Interest at the Fixed Rate
On liquidation of a company, Principal amount of debentures is returned
First of All
Last of All
Before Equity Capital
After Equity Capital
Which of the Following is False
Debenture is a form of public borrowings
It is customary to prefix debentures with the agreed rate of interest
Debenture interest is a charge against profits
the issue price and redemption value of debentures cannot differ
Which of the following is not a characteristics of Bearer Debentures
They are treated as negotiable instruments
their transfer requires a deed of transfer
they are transferable by mere delivery
The interest on it is paid to the holder irrespective of identity
Which of the following statement is false?
At maturity, debenture holders get back their money
Debentures can be forfeited for non-payment of call money
In Company's Balance Sheet, debentures are shown under the head Long term borrowings
Interest on Debentures is a charge against profit
The principal amount of debentures will be repaid by the Company either at the end of a specified period or by installments during the life time of the Company. Such types of debentures are Called
Redeemable Debentures
Irredeemable Debentures
Convertible Debentures
Bearer Debentures
