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Debentures MCQ Questions & Answers

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




Question 1

Point out the false statements

A. A firm can buy its own debentures and shares.
B. A Company can issue convertible debentures.
C. A business can issue debentures with voting rights.
D. An organization can issue redeemable debentures.

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Question 2

Debenture Application A/c is in the form of

A. Current Account
B. Nominal Account
C. Personal Account
D. Real Account

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Question 3

The owner of the debenture is qualified for

A. Fixed-rate interest
B. Company’s voting rights
C. Firms Profits share
D. Fixed dividend

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Question 4

On company liquidation, the principal amount of debentures is returned

A. After Equity Capital
B. Before Equity Capital
C. Last of All
D. First of All

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Question 5

Which options are not a feature of Bearer Debentures?

A. The interest is paid to the holder irrespective of identity
B. It is transferred by mere delivery.
C. The transfer of bearer debenture requires transfer deed
D. It is a negotiable tool.

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Question 6

Debenture holders are

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

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Question 7

In debenture, interest payable is

A. Transferred to general reserve
B. Transferred to falling fund investment account
C. Charged against the firm’s profits
D. Appropriation of the company’s profits

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Question 8

The form of a discount on issue of Debentures is in the nature of

A. Deferred Revenue Expenditure
B. Capital loss
C. Revenue loss
D. None of the above

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Question 9

Which of the below-mentioned statement is not true?

A. The issue price and redemption value of debentures cannot differ
B. Interest on debenture is a charge against profits
C. It is common to prefix debentures with the agreed interest rate
D. A debenture is a kind of public borrowing

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Question 10

Debentures indicate the

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

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