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Redemption of Debentures MCQ Questions & Answers - Accountancy Class 12

Redemption of Debentures MCQs : This section focuses on the "Redemption of Debentures" in Accountancy Class 12. These Multiple Choice Questions (MCQs) should be practiced to improve the Accountancy Class 12 skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

__________ refers to payment of the amount of debentures by the enterprise.

A. Accounting for Share
B. Redemption of debentures
C. Financial Statements
D. Comparative Statements 

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Question 2

When debentures are reclaimed, liability on account of debentures is being discharged. 

A. Yes
B. No
C. Can be yes or no
D. Can not say

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Question 3

How many ways by which the debentures can be reclaimed?

A. 1
B. 2
C. 3
D. 4

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Question 4

The enterprise reclaims the debentures by paying the fund in ?

A. instalments
B. open market
C. lump sum
D. into shares

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Question 5

Debentures may be redeemed at:

A. Par
B. Premium
C. Either A or B
D. Both A and B

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Question 6

Debenture holders are : 

A. Owners of the Company
B. Debtors of the Company
C. Creditors of the Company
D. Promoters of the Company

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Question 7

Debentures represent the?

A. Long-term Borrowings of a Company
B. The Investment of Equity-Shareholders
C. Directors’ shares in a company
D. Short-term Borrowings of a Company

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Question 8

Zero Coupon Bonds are issued

A. At Zero Interest Rate
B. With Specified Rate of Interest
C. Without Specified Rate of Interest
D. None of the above

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Question 9

Interest payable on debentures is 

A. an appropriation of profits of the company
B. a charge against profits of the company
C. transferred to sinking fund investment account
D. transferred to general reserve

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Question 10

When an enterprise buys its own debentures for the aim of cancellation, such an act of buying and cancelling the debentures comprises redemption of debentures by purchase in the open marketplace.

C. Can be true or false
D. Can not say

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