Question

State whether the following statement is True (T) or False (F):

Redeemable debentures are those debentures which are payable on the expiry of a specific period.

Answer 1

This statement is true.

Explanation:

Redeemable debentures are debt instruments issued by a company with a binding agreement to repay the principal amount back to the debentureholders upon the expiry of a fixed specified period, either in a lump sum or in instalments during the lifetime of the company.