Benefits of Debentures

Q.

What are the advantages of debentures?

Q. What do you mean by the term ‘share’? Discuss the type of shares, with can be issued under the Companies Act, 2013 as amended to date.

Q.

Dividends are Usually Paid on

Q.

Can the company purchase its own debentures?

Q.

Debeture is -

1. None of these

2. a written instrument acknowledging a debt written by its company

3. a written instrument acknowledging a debt written by its holder

4. an oral acknowledgement of the debt by a company.

Q.

Which of the following are types of debentures?

1. Convertible

2. Redeemable

3. Secured

4. Unsecured

Q.

Debentures can be bought and sold in the market for a _______________

1. lower price

2. higher price

3. higher or a lower price.

4. None of these

Q.

Interest payable on debentures is :

1. transferred to sinking fund investment account

2. transferred to general reserve

3. an appropriation of profits of the company

4. a charge against profits of the company

Q.

What are the advantages of cash credit?

Q.

When the stock market is bearish, a company may depend upon ______ in order to raise the required funds.

1. Debentures

2. Preference shares

3. All of the above

4. Equity shares

Q.

Is a debenture a loan?

Q.

Mention three points that are to be kept redeeming the debentures.

Q.

A company is likely to declare higher dividends if _______.

1. Tax rate has no effect on dividend declaration.

2. Tax rates are relatively lower.

3. None of the above.

4. Tax rates are high.

Q.

What Is Debentures?

Q.

How many types of debentures are there?

Q. are loans that companies borrow from the general public.

1. Shares
2. Debentures
3. Term loan
4. Bank Loan

Q. Select the most appropriate alternative from those given below and rewrite the statement.

The drawings of partners are transferred to __________________ account.
a) trading
b) profit and loss
c) partner’s capital
d) balance sheet

Q. What do you mean by profit and loss appropriation account?

Q.

What are the two types of debentures?

Q.

How many types of debentures are there?

Q.

Are there any restrictions on the purpose for which a bank loan may be used?

1. Yes

2. Can't say

3. No

4. None of these

Q.

How many types of debentures are there?

Q. Answer the question.
What is Profit and Loss Appropriation Account?

Q.

How legal is a promissory note?

Q. Interest on capital is ______ for a business concern.

1. Income
2. Asset
3. Expense
4. Liability

Q. Redemption is made in accordance __________________.

1. The interest on it is paid to the holder irrespective of identity.

2. They are treated as negotiable instrument

3. Their transfer requires a deed of transfer.

4. They are transferrable by mere delivery

Q. Consignment a/c is prepared by ___________.

1. Consignee
2. Consignor
3. Seller
4. Agent

Q. To record credit sale, when del-credere commission is not given which of the following entry is passed in the books of Consignor?

A.Consignment Debtors A/c To Consignment A/c	Dr.
B.Consignee A/c To Consignment A/c	Dr.
C.Consignment Debtors A/c To Consignee A/c	Dr.
D. Consignment Debtors A/c To Sales A/c	Dr.

1. A
2. B
3. C
4. D

Q.

Can you sell debentures anytime to another person who is willing to buy?

1. Yes

2. No

3. Can't say

4. None of these

Q. Equity share capital carries __________.

1. Fixed interest
2. Fixed bonus
3. Fixed dividend
4. No fixed dividend