CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Redemption of Debentures

Debenture hol...

Question

Debenture holders are paid _________ stated amount of interest at specified intervals.

A

fixed

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

B

fluctuating

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

C

higher

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

D

lower

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

Open in App

Solution

The correct option is A fixed
Debenture holders are paid a fixed stated amount of interest at specified intervals. Public issue of debentures requires that the issue be rated by a credit rating agency.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Which of the following statement is true?
a. A debenture holder is an owner of the company.
b. A debenture holder can get his money back only on the liquidation of the company.
c. A debenture issued at a discount can be redeemed at a premium.
d. A debenture holder receives interest only in the event of profit.

Q. At the time of liquidation, debenture holders are paid-off _____ the shareholders are paid.

Q. Select most appropriate alternative from those given below :

The interest on debentures is transferred to __________.
a) Debentures A/c
b) Profit of Loss A/c
c) Balance Sheet
d) Debenture holders A/c

Q. State True/False with reasons:
Dividend warrants are used to pay interest to the debenture holders.

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
(ii) Interest received on loans taken by government.
(iii) Leave travel allowance paid to employees by a company.
(iv) Direct purchases made by resident households.
(v) Interest received on debentures by debenture-holders.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Accounting Treatment-II

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Redemption of Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon