English

Assertion (A): Irredeemable debentures are also known as perpetual debentures. Reason (R): The company does not give any undertaking for the repayment of money borrowed by issuing such debentures.

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Question

Assertion (A): Irredeemable debentures are also known as perpetual debentures.

Reason (R): The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company.

Choose the correct option from the following.

Options

  • Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

  • Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

  • Assertion (A) is incorrect, but Reason (R) is correct.

  • Assertion (A) is correct, but Reason (R) is incorrect.

MCQ
Assertion and Reasoning
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Solution

Assertion (A) is correct, but Reason (R) is incorrect.

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Chapter 7: Company Accounts - Issue of Debentures - OBJECTIVE TYPE QUESTIONS [Page 7.77]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 7 Company Accounts - Issue of Debentures
OBJECTIVE TYPE QUESTIONS | Q B. 13. | Page 7.77
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