Investment made on shares and debentures is called ________ investment.

real

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financial

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inventary

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foreign

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Solution

The correct option is B financial
Financial investments are the investments which are made of financial assets like shares and debentures where the ownership of these assets are easily transferable in the market with high mobility and such type of investments carry high risk.

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Similar questions

Why would an investor prefer to invest in the debentures of a company rather than in its shares?

Q. In what order, the following assets are shown in the balance sheet of a company?
i) Trade receivables
ii) Cash
iii) Furniture and fittings
iv) Investment in shares and debentures

M / s. Uncle Chips Ltd. issued 5,000 equity shares of Rs 100 each at a peremium of Rs 25 per share. The company received 12,000 applications on which 2,000 applications were totally rejected and their amount was refunded, while the remaining applicants were allotted shares on pro-rata basis. The amount of shares received is as under :
On application Rs 30, on allotment Rs 45 (including premium), on first call Rs 25 and on second call Rs 25. Allotment money was received in full. First call was made and received except on 250 shares held by Mr. Govind. His shares were forfeited and re-issued at Rs 75 paid for Rs 110 per share to Mr. Anand. Final call was made and received except on 100 shares held by Mr. Binu. Pass Journal entries.

XYZ, Ltd. issued 15,000, 10% debentures of Rs 100 each. Give Journal entries and the Balance Sheet in each of the following cases :

(i) The debentures are issued at a premium of 10%.

(ii) The debentures are issued at a discount of 5%.

(iii) The debentures are issued as a collateral security to bank against a loan of Rs 12,00,000; and

(iv) The debentures are issued to a supplier of machinery costing Rs 13,50,000.

Q. From the following particulars, calculate Cash Flow from Investing Activities


Particulars	Purchased (₹)	Sold (₹)
Machinery	6,20,000	2,00,000
Investments	2,40,000	80,000
Goodwill	1,00,000	...
Patents	...	1,50,000

Additional Information:

1. Interest received on debentures held as investment ₹ 8,000.

2. Interest paid on debentures issued ₹ 20,000.

3. Dividend received on shares held as investment ₹ 20,000.

4. Dividend paid on Equity Share Capital ₹ 30,000.

5. A plot of land was purchased out of the surplus funds for investment purposes and was let out for commercial use. Rent received ₹ 50,000 during the year.

Q. The investment in debentures is a investment, and it is shown on the side of the balance sheet.

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Investment made on shares and debentures is called ________ investment.

The correct option is B financialFinancial investments are the investments which are made of financial assets like shares and debentures where the ownership of these assets are easily transferable in the market with high mobility and such type of investments carry high risk.

The correct option is B financial
Financial investments are the investments which are made of financial assets like shares and debentures where the ownership of these assets are easily transferable in the market with high mobility and such type of investments carry high risk.