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Which of the following is Correct with respect to debentures? (a) They can be issued on credit. (b) They can be issued for consideration other than cash.

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Question

Which of the following is Correct with respect to debentures?

Options

  • They can be issued on credit.

  • They can be issued for consideration other than cash.

  • They cannot be issued as collateral security.

  • They can be issued partly on credit and partly in cash.

MCQ
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Solution

They can be issued for consideration other than cash.

Explanation:

A company can issue debentures to a vendor for purchasing assets or a business. Therefore, debentures can be issued for consideration other than cash.

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Chapter 9: Issue of Debentures - QUESTIONS [Page 9.66]

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TS Grewal Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
Chapter 9 Issue of Debentures
QUESTIONS | Q 14. | Page 9.66
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