Meaning of Debentures

Q.

Under which of the following head/subhead is ‘Forfeited Shares’ presented in the Balance Sheet of a company?

Q.

Share application and allotment account is a

Q.

What is meant by redemption of debentures by 'Purchase in the Open Market'?

Q.

Which of the following statements is false

1. At maturity, debenture holders get back their money.

2. In company's balance sheet, debentures are shown under the head Long Term Borrowings

3. Interest on debentures is a charge against profit

4. Debentures can be forfeited for non-payment of call money

Q.

The rate of return on capital is exceptionally high in _____.

1. Under–capitalisation

2. Over–capitalisation

3. Working capital

4. Fixed capital

Q.

What are the two sources of equity?

Q.

Which of the following statements is false :

1. A company can issue convertible debentures

2. A company can buy its own debentures and shares

3. A company can issue debentures with voting rights

4. A company can issue redeemable debentures

Q.

___ debentures are those which are payable on the expiry of the specific period either in lump sum or in instalments.

1. Convertible

2. Redeemable

3. Unsecured

4. Secured

Q.

A ‘share’ represents ownership of the company whereas a debenture is only acknowledgement of debt. State true or false.

1. False

2. True

Q. What is 'retirement of a bill of exchange'?

Q.

______________ are loans that companies borrow from the general public.

1. Debentures

2. Shares

3. Shareholders

4. None of these

Q. If a single proprietor or a few partners bring in money to invest in the business, it is known as .

1. capital
2. drawings
3. employee benefit
4. investment

Q. A ‘share’ represents of the company whereas a 'debenture' is only of debt.

1. ownership
2. distribution
3. acknowledg-ement
4. processing

Q.

What is meant by redemption of debentures?

Q. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean?
A. Shares of the company will be issued only through public sector organisations like banks/Central financial institutions etc.
B. Shares of the company will be issued to general public only through primary market.
C. This means some stakeholders/promoters are willing to leave the company. Hence they wish to sell their stock to the general public.

1. All (A), (B) and (C)
2. Only (B)
3. Only (C)
4. Only (A)

Q.

Is capital the same as money?

Q. are the owners of the company who contribute to the ambitious plans of the company for the future.

1. Shareholders
2. Employees
3. Directors
4. Debenture-holders

Q. Does the procedure for the issue of debentures is very much similar to that of the issue of shares?

1. Irredeemable

2. Redeemable

3. Unsecured

4. Secured

Q. _______ are often used to refer to the stock of a corporation.

1. profit
2. rate
3. interest
4. shares

Q. A person who is purchases share of the company is called____________.

1. Manager
2. Secretary
3. Director
4. Shareholder

Q. State the following statement is True of False:

1. True
2. False

Q. Accounting entries in the Return outward book are recorded on the basis of credit note.

1. True
2. False

Q. The property of the company is property of the shareholder.

1. True
2. False

Q. Write one word/term/phrase which can substitute each of the following

The debentures of which the payment is not made until the winding up of company.

Q. Limited liability partnership posses not more than $2$ of the following character.
$1$. Limited liability
$2$. Raise funds from public
$3$. No separation of management from owners
$4$. No Restriction on number of partners

1. $2\&4$
2. $1\&2$
3. $1\&3$
4. $1\&4$