English

Which of the following statements is false? (A) Debenture is a form of public borrowing. (B) It is customary to prefix debentures with the agreed rate of interest. - Accounts

Advertisements
Advertisements

Question

Which of the following statements is false?

Options

  • Debenture is a form of public borrowing.

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

  • Debenture interest is a charge against profits.

  • The issue price and redemption value of debentures cannot differ.

MCQ
Advertisements

Solution

The issue price and redemption value of debentures cannot differ.

Explanation:

Debentures can be issued at a discount or premium and redeemed at a different value (e.g., issued at a discount, redeemed at a premium).

shaalaa.com
  Is there an error in this question or solution?
Chapter 7: Company Accounts - Issue of Debentures - OBJECTIVE TYPE QUESTIONS [Page 7.66]

APPEARS IN

D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 7 Company Accounts - Issue of Debentures
OBJECTIVE TYPE QUESTIONS | Q A. 7. | Page 7.66
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×