Questions with Answers on Issue of Debentures:
Debentures which have the charge on the property of the company is ______
(a) Secured
(b) Unsecured
(c) Registered
(d) None of the above
Debenture which are repayable only on the happening of an event of winding up is called
(a) Redeemable
(b) Irredeemable
(c) Perpetual
(d) Both (b) & (c)
When own debentures are cancelled, any profit on cancellation is transferred to ……..
(a) General Reserve
(b) Capital Reserve
(c) Profit and Loss A/c
(d) Debenture A/c
‘Debenture holders’ of a company are its
(a) Shareholders
(b) Creditors
(c) Debtors
(d) Directors
Return paid on debentures is _______
(a) Interest
(b) dividend
(c) Commission
(d) Tax
Related: top Stock exchanges
Debentures are shown in the balance sheet under the head ___
(a) Secured loans
(b) Unsecured loans
(c) Provisions
(d) Current liabilities
Discount or loss on issue of debenture is shown in the balance sheet under the head ……..
(a) Reserves & Surplus
(b) Secured loans
(c) Current liabilities
(d) Miscellaneous expenditure
___is an instrument of acknowledgment of debt.
(a) Equity share
(b) Preference Share
(c) Debenture
(d) All of these
If the purchase price of debentures includes interest for the expired period, the quotation is said to be ___.
(a) Ex‐interest
(b) Cum‐interest
(c) Co‐interest
(d) None of these
Debenture represents __ Of a company
(a) Borrowed capital
(b) Owned capital
(c) Hybrid capital
(d) None of these
Related: Nationalised banks in India
Unsecured debentures does not require any registration because it is not secured by__
(a) Fixed
(b) Floating charge
(c) Both (a) & (b)
(d) None of the above
Debentures payable to a holder of certificate is called_____
(a) Bearer
(b) Unregistered
(c) Secured
(d) Both (a) & (b)
Debentures can be redeemed out of __
(a) Fresh issue
(b) Capital
(c) Profit
(d) All of these
Debenture holders are the __ of a company
(a) Debtors
(b) Owners
(c) Creditors
(d) Borrowers
Debentures payable to person whose name appears both on Debenture Certificate and company’s register is called
(a) Bearer
(b) Unregistered
(c) Registered
(d) None of the above
Related: Financial Reporting Quiz
For the purpose of debt equity ratio Fully Convertible Debentures are classified as____
(a) Debt
(b) Equity
(c) Both (a) & (b)
(d) None of the above
___debentures are transferable by mere delivery
(a) Naked
(b) Mortgage
(c) Registered
(d) Bearer
Interest on debenture is __
(a) Adjustment of profit
(b) Appropriation of Profit
(c) Charge on profit
(d) None of these
In case of Partly Convertible Debentures non-convertible portion is classified as_____
(a) Debt
(b) Equity
(c) Both (a) & (b)
(d) None of the above
In case of application for transfer Debenture Certificate is to be issued within ____ months
(a) 1
(b) 2
(c) 3
(d) 4
Related: basic Accounting questions and answers
Unsecured debentures are called as ___.debentures
(a) Naked
(b) Mortgage
(c) Registered
(d) Bearer
Debenture forms part of
(a) Capital
(b) Loan
(c) Fund
(d) None of the above
If the purchase price of debentures excluding interest for the expired period, the quotation is said to be ___.
(a) Ex‐interest
(b) Cum‐interest
(c) Co‐interest
(d) None of these
Which of the following statement is not correct in context to debentures?
(a) It is an owner’s capital
(b) It may be redeemed through sinking fund
(c) It carries fixed rate of interest
(d) It may be convertible
When debentures are issued as a consideration of purchase of assets ___ Is debited.
(a) Debenture Account
(b) Cash Account
(c) Assets Account
(d) Creditor Account
Related: Employment And Unemployment Quiz
Debenture holders will get __
(a) Dividend
(b) Interest
(c) Profit
(d) All of these
___ debentures can be transferred only with the knowledge of the company.
(a) Naked
(b) Mortgage
(c) Registered
(d) Bearer
__ debentures are secured by the assets of the company
(a) Naked
(b) Mortgage
(c) Registered
(d) Bearer
FCD stands for ___
(a) Fixed Charge Debentures
(b) Floating Charge Debentures
(c) Fully Convertible Debentures
(d) None of these
Discount or loss on issue of debenture is a ___
(a) Capital Profit
(b) Revenue Receipt
(c) Capital Loss
(d) Revenue Expense
Related: Questions about Inflation
This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue
(a) current yield
(b) coupon rate
(c) market rate
(d) none of the above
