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Question

Which of the following statements is false?


A

The issue price and redemption value of debentures cannot differ

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B

Debenture interest is a charge against profits

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C

It is customary to prefix debentures with the agreed rate of interest

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D

Debenture is a form of public borrowing

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Solution

The correct option is A

The issue price and redemption value of debentures cannot differ


The issue price and redemption value of debentures can differ.
Eg : Debentures issued at par and redeemed at premium


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