Tag: meaning and kinds of debentures

Questions Related to meaning and kinds of debentures

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

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

  1. Principal

  2. Primary

  3. Collateral

  4. Chargeable

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Correct Option: C
Explanation:

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

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

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

  1. Both (a) and (b)

  2. Both (a) and (c)

  3. Both (b) and (c)

  4. All of (a), (b), (c) and (d) above

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Correct Option: D
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.