Tag: meaning and kinds of debentures

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Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) types of issue of debentures types of debentures meaning and kinds of debentures

Companies may issue the debentures as security against loans taken from banks/financial institutions as _______.

  1. Principal

  2. Primary

  3. Collateral

  4. Chargeable
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debentures can be issued as a collateral security against the loan taken from banks or financial institutions.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) types of issue of debentures types of debentures meaning and kinds of debentures

Debentures can be_____.
a. Mortgage Debenture or Simple Debenture.
b. Registered Debenture or Bearer Debenture.
c. Redeemable Debenture or Irredeemable Debenture.
d. Convertible Debenture or Non-convertible Debenture

  1. Both (a) and (b)

  2. Both (a) and (c)

  3. Both (b) and (c)

  4. All of (a), (b), (c) and (d) above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Debenture is a written instrument acknowledging a debt under the common seal of the company. There are various types of debentures: Secured and unsecured debentures, redeemable and irredeemable debentures, Convertible and non-convertible debenture, registered and bearer debentures, Specific coupon rate and zero coupon rate debentures etc.