Question: Discount on issue of debentures account is a
- a) Fictitious Asset
- b) Current Asset
- c) Fixed Asset
- d) Current liability
Answer: Fictitious Asset
Question: Securities Premium received on debentures is a
- a) Capital Profit
- b) Current Asset
- c) Capital Loss
- d) None of the options
Answer: Capital Profit
Question: Shareholders get dividend, Debenture holders will get
- a) Interest
- b) Shares
- c) Bonus
- d) Profit
Answer: Interest
Question: Debenture is acknowledgment of debt and a contract for the repayment of principal amount with
- a) Interest
- b) Premium
- c) Dividend
- d) None of the options
Answer: Interest
Question: debentures can be issued under the ________ of company
- a) Common seal
- b) Rules & Principles
- c) Companies Act
- d) None of the options
Answer: Common seal
Question: A debenture is
- a) An external equity
- b) Owners equity
- c) An internal equity
- d) Payment of Profit
Answer: An external equity
Question: At the time of liquidation the payment to debenture holders is made on the priority bases before the
- a) Payment of Share Capital
- b) Payment of Dividend
- c) Payment of Profit
- d) Payment of Profit
Answer: Payment of Share Capital
Question: A Company can issue its debentures a
- a) All of the options
- b) At Par
- c) At Premium
- d) At Discount
Answer: All of the options
Question: Non-Convertible Debentures
- a) Cannot be converted into shares
- b) Cannot be redeemed
- c) Cannot not be issued
- d) None of the options
Answer: Cannot be converted into shares
Question: Debenture holders do not have right for
- a) All of the options
- b) Dividend
- c) Profit
- d) Voting Right
Answer: All of the options
More Questions....................
Question: When a company issue its debentures at discount, the amount of discount is considered as a:
- a) Capital loss
- b) Normal Loss
- c) Capital gain
- d) Reserve & Surplus
Answer: Capital loss
Question: Debenture forms part of
- a) Loan
- b) Capital
- c) Fund
- d) None of the options
Answer: Loan
Question: Is payable even if there are no profits
- a) Interest.
- b) Dividend
- c) Commission
- d) Secured
Answer: Interest.
Question: Debentures payable to a holder of certificate is called
- a) Bearer.
- b) Unregistered
- c) Secured
- d) None of the options
Answer: Bearer.
Question: Debentures payable to person whose name appears both on Debenture Certificate and companys register is called
- a) Registered.
- b) Unregistered
- c) Bearer
- d) None of the options
Answer: Registered.
Question: Debentures which have the charge on the property of the company is
- a) Secured.
- b) Unsecured
- c) Registered
- d) None of the options
Answer: Secured.
Question: Debenture which are repayable only on the happening of an event of winding up is called
- a) Both
- b) Irredeemable
- c) Perpetual
- d) None of the options
Answer: Both
Question: Types of debentures on the basis of security
- a) Both
- b) Secured debentures
- c) Unsecured debentures
- d) None of the options
Answer: Both
Question: Types of debentures on the basis of redemption
- a) Both
- b) Redeemable
- c) Non-Redeemable
- d) None of the options
Answer: Both
Question: Types of debentures on the basis of records
- a) Both
- b) Registered debentures
- c) Bearer debentures
- d) None of the options
Answer: Both
Question: This is not different types of debentures
- a) Equity Debentures
- b) Redeemable Debentures
- c) Perpetual Debentures
- d) Coupon Rate Debentures
Answer: Equity Debentures
Question: Premium on issue of debentures is considered as
- a) Capital profit
- b) Average Profit
- c) Reserve Capital
- d) Light Discount bond
Answer: Capital profit
Question: When an instrument is issued without interest rate and issue price is thereby discounted, the issue of such instrument is called ----
- a) Deep Discount Bond
- b) Fixed coupon Bond
- c) Light Discount bond
- d) None of the options
Answer: Deep Discount Bond
Question: Interest on debentures will be paid to debenture holders
- a) Whether there is profit or loss
- b) When there is profit
- c) When there is capital reserve
- d) None of the options
Answer: Whether there is profit or loss
Question : Shubham Limited invited applications for 5,000, 11% Debentures @ 100 each. The issue was oversubscribed by 5 times. What is this situation called?
- a) Over Subscription
- b) Full Subscription
- c) Under Subscription
- d) Pro-rata Allotment
Answer: Over Subscription
Question: While passing the entry for refund of money if the applications are rejected. Which account should be credited
- a) Bank A/c
- b) Debenture Application A/c
- c) Debenture Allotment A/c
- d) None of the options
Answer: Bank A/c
Question: A debenture of Rs. 100 is issued at Rs. 105.It is an example of
- a) Debenture issued at premium
- b) Debenture issued at par
- c) Debenture issued at discount
- d) None of the options
Answer: Debenture issued at premium
Question: When a company purchases some assets and issues debentures as a payment for the purchase, to the vendors it is known as issue of
- a) Debentures issued for consideration other than cash
- b) Debentures issued for cash
- c) Debentures issued as collateral security
- d) None of the options
Answer: Debentures issued for consideration other than cash
Question: Name the security which is issued in addition to the principal security
- a) Collateral security
- b) Principal security
- c) Security Premium
Answer: Collateral security
Question: When does a company issue debentures as collateral security
- a) When lender demands additional security
- b) When lender gives additional security
- c) When lender does not gives additional security
- d) When lender does not demands additional security
Answer: When lender demands additional security
