Introduction to Debentures

Q. Bank Loan is shown in the Equity and Liabilities side of Balance Sheet under the head ___ and sub-head ___ .

1. Non-current Liabilities, Short term Borrowing
2. Current Liabilities, Short-term Borrowings
3. Non-current Liabilities, Long-term Borrowings
4. Fixed, Current-liabilities

Q.

In hire purchase ownership of the property is transferred to the hirer on the payment of the ------------- installment. a) last b) third c) first d) second

Q.

How is 'Discount on Issue of Debentures' treated in the books of accounts? How will you deal with the 'Discount on issue of debentures' when the debentures are to be redeemed in instalments?

Q.

Who enjoys the voting rights?

1. Employees

2. None of these

3. Debenture holders

4. Shareholders

Q.

The house kept with the bank as mortgage acts as a security for the loan. Hence, it is ___________ to the bank

1. an asset

2. a liability

3. can't say

4. none of these

Q. In case of default in repayment of loan, the bank auction the property for sale and recover their money. This procedure is called .

1. back-closure
2. foreclosure
3. non-closure
4. part-closure

Q. The mortgage is a/an agreement which entitles the bank to your house or property.

1. legal
2. oral
3. illegal
4. unverified

Q.

What are the types of promissory notes?

Q. The bank gives you money in exchange for a mortgage on your house. This type of loan is called a/an .

1. house loans
2. mortgage
3. appliance loans
4. payday loans

Q.

Is debenture issued to general public True or False.

1. False

2. True

Q.

The mortgage is a _________ which entitles the bank to your house or property.

1. Illegal agreement

2. oral agreement

3. None of these

4. legal agreement

Q.

In case of default, the bank auction the property for sale and recover their money. This procedure is called ___________.

1. Back closure

2. Foreclosure

3. Non-closure

4. None of these

Q.

The bank gives you money in exchange for a mortgage on your house. This type of loan is called _____________.

1. Payday loans

2. House loans

3. Appliance loans

4. Mortgage

Q.

The mortgage agreement becomes ___________ once you complete all your loans.

1. effective

2. unconditional

3. null or void

4. none of these

Q.

Banks took a lot of the mortgages, grouped them together and create securities. What are these securities called?

1. non-mortgage backed

2. mortgage

3. mortgage-backed

4. None of these

Q. The mortgage agreement becomes once you complete all your loans.

1. effective
2. unconditional
3. null
4. conditional

Q.

Discount on debentures must not exceed 10%. State true or false.

1. False

2. True

Q.

In the event, that person taking the loan is unable to repay the loan on the house on time:

1. the person has right to auction the property for sale
2. the person has no right to auction the property for sale

3. Yes, the bank has the right to auction the property for sale

4. No, the bank has no right to auction the property for sale.

Q. The house kept with the bank as mortgage acts as a security for the loan is a/an to the bank.

1. asset
2. liability
3. income
4. expense

Q. Which of the following are not current liabilities?

1. Bank overdraft.
2. Redeemable debentures.
3. Accounts payable.
4. Provision for doubtful debts.

Q.

Bank would give preference to borrowers who have a __________________.

1. None of these

2. better credit rating and more assets

3. less credit rating and more assets

4. better credit rating and less assets

Q. Long-term liabilities are ____________.

1. Fixed assets minus current assets
2. Fixed assets minus current liabilities
3. Current assets plus current liabilities
4. Total liabilities minus current liabilities

Q. State with reasons whether the following statement is true or false.
Equity + LTL - CL = FA +CA.

1. True
2. False

Q. how the board of directors of a company are elected? explain briefly

Q. State with reasons whether the following statement is true or false:
Discount account should be balanced in the Cash Book.

1. True
2. False