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Which of the following is not a characteristic of Bearer Debentures? (A) They are treated as negotiable instruments. (B) Their transfer requires a deed of transfer. - Accounts

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Question

Which of the following is not a characteristic of Bearer Debentures?

Options

  • They are treated as negotiable instruments.

  • Their transfer requires a deed of transfer.

  • They are transferable by mere delivery.

  • The interest on it is paid to the holder irrespective of identity.

MCQ
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Solution

Their transfer requires a deed of transfer.

Explanation:

Transferring bearer debentures does not necessitate the use of a deed of transfer. These debentures can be transferred simply by delivering them.

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Chapter 7: Company Accounts - Issue of Debentures - OBJECTIVE TYPE QUESTIONS [Page 7.66]

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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 A. 8. | Page 7.66

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