Conversion of debenture into share capital results in _________.

sources of funds

No worries! We‘ve got your back. Try BYJU‘S free classes today!

sources of cash

No worries! We‘ve got your back. Try BYJU‘S free classes today!

application of funds

No worries! We‘ve got your back. Try BYJU‘S free classes today!

no flow of fund

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is A no flow of fund
Conversion of debenture through share capital does not involve any outflow of funds.
Its only an accounting transaction where debentures are converted into shares. No funds are utilized in such case.

Suggest Corrections

Similar questions

Distinguish between a debenture and a share. Why debenture is known as loan-capital? Explain.

90, 000

1, 00, 000

10

1

1

The cheapest source of finance is

(a) debenture

(b) equity share capital

(d) retained earning

Which of the following is not a function of insurance?

(a) Risk sharing

(b) Assist in capital formation

(d) None of these

Join BYJU'S Learning Program