CHAPTER 2: Issue and Redemption of Debentures NCERT MCQ CLASS 12TH ACCOUNTS | EDUGROWN

NCERT MCQ ON Issue and Redemption of Debentures.:

Question1: Which of the following statements is true?

• a) A debenture issued at a discount can be redeemed at a premium
• b) A debenture holder is an owner of the company
• c) A debenture holder can get his money back only on the liquidation of the company
• d) A debenture holder receives interest only in the event of profits

Answer: A debenture issued at a discount can be redeemed at a premium

Question2: Which of the following statements is false?

• a) Debentures cannot be secured
• b) A company can issue convertible debentures
• c) A company can issue redeemable debentures
• d) Debentures have no right to participate in profits over and above their fixed interest

Answer: Debentures cannot be secured

Question3: Perpetual debentures are also known as

• a) Irredeemable debentures
• b) Secured Debentures
• c) Unsecured Debentures
• d) None of the options

Answer: Irredeemable debentures

Question4: Debenture premium cannot be used to

• a) Pay dividends
• b) Write off the discount on issue of shares or debentures
• c) Write off the premium on redemption of shares or debentures
• d) Write off capital loss

Answer: Pay dividends

Question5: Loss on issue of debentures is treated as

• a) Miscellaneous expenditure
• b) Intangible asset
• c) Current asset
• d) Current liability

Answer: Miscellaneous expenditure

Question6: Secured Debentures is known as

• a) Mortgage debentures
• b) Naked debentures
• c) Unsecured Debentures
• d) None of the options

Answer: Mortgage debentures

Question7: Unsecured Debentures is known as

• a) Simple or Naked debentures
• b) Mortgage debentures
• c) Secured Debentures
• d) None of the options

Answer: Simple or Naked debentures

Question8: Which of the following is not true about debenture stock:

• a) Debenture stock are identified by their distinct number
• b) It must be fully paid.
• c) Debenture Stock can be transferred in fraction.
• d) None of the options

Answer: Debenture stock are identified by their distinct number

Question9: Which is an agreement between the company and the trustees to look after the interest of debenture holders.

• a) Debenture trust deed
• b) Partnership deed
• c) Both
• d) None of the options

Answer: Debenture trust deed

Question10: A company can not issue

• a) Debentures with voting rights
• b) Share
• c) Debentures
• d) None of the options

Answer: Debentures with voting rights

Question11: Which of the following is not a characteristic of Bearer Debentures?

• a) Their transfer requires a deed of transfer
• b) They are treated as negotiable instruments
• c) They are transferable by mere delivery
• d) The interest on it is paid to the holder irrespective of identity

Answer: Their transfer requires a deed of transfer

Question12: Which of the following is/are true with respect to debentures?

• a) Both
• b) They can be issued for cash
• c) They can be issued for consideration other than cash
• d) None of the options

Answer: Both

Question13: When debentures are issued as collateral security, the final entry for recording the transaction in the books is

• a) Debit debenture suspense a/c. and credit debentures a/c.
• b) Credit debentures a/c. and debit cash a/c.
• c) Debit debenture suspense a/c. and credit cash a/c.
• d) None of the options

Answer: Debit debenture suspense a/c. and credit debentures a/c.

Question14: Which of the following is false with respect to debentures?

• a) They can be issued in lieu of dividends
• b) They can be issued for cash
• c) They can be issued for consideration other than cash
• d) They can be issued as collateral security

Answer: They can be issued in lieu of dividends

Question15: Which of the following is true with regard to 10% Debentures issued at a discount of 20%

• a) The face value and the carrying amount of debentures are equal.
• b) The carrying amount of debentures gets reduced each year at a rate of 20%
• c) Issue price and the carrying amount of debentures are equal
• d) At the time of redemption, the debenture holder will be paid the issue price

Answer: The face value and the carrying amount of debentures are equal.

Question16: Which of the following statements is false?

• a) The issue price and redemption value of debentures cannot differ.
• b) Debenture is a form of public borrowing
• c) It is customary to prefix debentures with the agreed rate of interest
• d) Debenture interest is a charge against profits

Answer: The issue price and redemption value of debentures cannot differ.

Question17: As per the Companies Act, Interest accrued and due on debentures should be shown Under

• a) Debentures.
• b) Capital
• c) Shares
• d) None of the options

Answer: Debentures.

Question18: Which of the following is false?

• a) Interest on debentures is an appropriation of profits.
• b) Equity is owners stake and the debenture is a debt
• c) Rate of interest on debentures is fixed
• d) Debenture holders get preferential treatment over the equity holders at the time of liquidation

Answer: Interest on debentures is an appropriation of profits.

Question19: Discount on issue of debentures is a

• a) Capital loss to be written off over the tenure of the debentures
• b) Revenue loss to be charged in the year of issue
• c) Capital loss to be written off from capital reserve
• d) Capital loss to be shown as goodwill

Answer: Capital loss to be written off over the tenure of the debentures

Question20: Debentures are shown in the balance sheet of a company under the head of

• a) Non current Liabilities
• b) Current Liabilities
• c) Share Capital
• d) None of the options

Answer: Non current Liabilities

Question21: When debentures are issues at discount , the discount should be written off

• a) During the life of the debentures
• b) In the year of the issue of debentures
• c) Within 5 years of the issue of the debentures
• d) None of the options

Answer: During the life of the debentures

Question22: Debenture holder are

• a) The creditors of the company
• b) The owners of the company
• c) The vendors of the company
• d) None of the options

Answer: The creditors of the company

Question23: Debenture interest is paid

• a) At a pre determined rate
• b) At variable rate
• c) 25% of Profit
• d) None of the options

Answer: At a pre determined rate

Question24: At the time of issue of debentures , debenture Account is

• a) Credited by the face value of debentures
• b) Credited by the Amount received
• c) Credited by the issue price of debentures
• d) None of the options

Answer: Credited by the face value of debentures

Question25: Discount or loss on issue of debentures to be written of within after 12 months from the date of balance sheet or after the period of operating cycle is shown as

• a) Other Non current Assets
• b) Other Current assets
• c) Other Current Liabilities
• d) None of the options

Answer: Other Non current Assets

Question26: Discount or loss on issue of debentures to be written of within 12 months from the date of balance sheet or within the period of operating cycle is shown as

• a) Other Current assets
• b) Other Non current Assets
• c) Other Current Liabilities
• d) None of the options

Answer: Other Current assets

Question27: Debenture is a

• a) Long term Loan
• b) Short term loan
• c) Dividend
• d) None of the options

Answer: Long term Loan

Question28: Which does not have possess the voting right

• a) Debenture Holder
• b) Share Holder
• c) Both
• d) None of the options

Answer: Debenture Holder

Question29: A written promise for a debt by a company under its seal which contains the terms and conditions regarding the amount of loan

• a) Debenture
• b) Share
• c) Capital
• d) None of the options

Answer: Debenture

Question30: Debenture holders are entitled the right to receive

• a) Interest
• b) Dividend
• c) Both
• d) None of the options

Answer: Interest

Question31: Debentures of a Company can be issued :

a) For Cash

b) For Consideration other than Cash

c) As a Collateral Security

d) Any of the above

Answer: D

Question32: On issue of debentures as a collateral security, which account is credited?

a) Debentures Account

b) Bank Loan Account

c) Debenture Holdings Account

d) Debenture Suspense Account

Answer: A

Question33: Debentures issued as collateral security will be debited to :

a) Bank Account

b) Debentures Suspense Account

c) Debentures Account

d) Bank Loan Account

Answer: B

Question34: On liquidation of company, principal amount of debentures is returned :

a) First of All

b) Last of All

c) Before Equity Capital

d) After Equity Capital

Answer: C

Question35: 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.

c) Debenture interest is a charge against profits.

d) The issue price and redemption value of debentures cannot differ.

Answer: D

Question36: 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.

c) They are transferable by mere delivery.

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

Answer: B

Question37: When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which a/c should be credited in this entry?

a) Loss on issue of debentures a/c

b) Debenture redemption premium a/c

c) Bank a/c

d) Debenture holder’s a/c

Answer: B

Question38: Premium on Redemption of Debentures Account is :

a) Personal Account

b) Real Account

c) Nominal Account

d) All of the Above

Answer: A

Question39: Debenture interest is paid

a) at a predetermined rate.

b) at variable rate.

c) at a rate based on net profit of the company.

d) at a rate as determined by the company from time to time.

Answer: A

Question40: At the time of issue of debentures, Debentures Account is

a) credited by the amount received.

b) credited by the issue price of the debentures.

c) credited by the nominal (face) value of the debentures.

d) None of the above.

Question41: X Ltd. acquired assets of Rs.20 lakhs and took over creditors of Rs.20 thousand from LLtd. XLtd. issued 8% debentures of Rs.200 each at a discount of 10% as purchase consideration. Number of debentures issued will be :

a) 11,000

b) 9,000

c) 10,000

d) 10,100

Answer: A

Question42: Globe Ltd. issues 20,000, 9% debentures of Rs. 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?

a) Rs. 1,00,000

b) Rs. 1,20,000

c) Rs.2,80,000

d) Rs.2,20,000

Answer: D

Question43: Issued 5,000, 12% debentures of Rs. 100 each at a discount of 2%, redeemable at a premium of 5%. In such case :

a) Loss on Issue will be Credited by Rs. 10,000.

b) Loss on Issue will be debited by Rs.35,000.

c) Premium on Redemption will be debited by Rs.25,000.

d) Premium on Redemption will be credited by Rs.35,000.

Answer: B

Question44: Issued 4,000, 12% debentures of Rs. 100 each at a premium of 4%, redeemable at a premium of 10%. In such case :

a) Loss on Issue will be debited by Rs.24,000

b) Loss on Issue will be debited by Rs.56,000

c) Loss on Issue will be debited by Rs.40,000

d) Premium on Redemption will be credited by Rs.24,000

Answer: C

Question45: When debentures are issued at a discount, the discount is written off

a) after debentures have been redeemed.

b) in the year when debentures are issued,

c) during the life of the debentures.

d) None of these.

Answer: B

Question46: Interest on Debentures is paid on

a) Amount received on Issue.

b) Nominal (Face) Value.

c) On Premium.

d) None of these.

Answer: B

Question47: Which of the following statements is false?

a) At maturity, debenture holders get back their money.

b) Debentures can be forfeited for non-payment of call money.

c) In company’s balance sheet, debentures are shown under the head Long term Borrowings.

d) Interest on debentures is a charge against profits.

Answer: B

Question48: Which of the following statements is false :

a) A Company can issue redeemable debentures.

b) A Company can issue debentures with voting rights.

c) A Company can issue convertible debentures.

d) A Company can buy its own debentures and shares.

Answer: B

Question49: The Principal amount of debentures will be repaid by the company either at the end of a specified period or by instalments during the life time of the company. Such types of debentures are called :

a) Redeemable Debentures

b) Irredeemable Debentures

c) Convertible Debentures

d) Bearer Debentures

Answer: A

Question50: If Vendors are issued debentures of Rs.4,40,000 in consideration of assets of Rs. 5,00,000 and liabilities of Rs. 1,00,000, the balance of Rs.40,000 will be debited to:

a) General Reserve Account

b) Capital Reserve Account

c) Goodwill Account

d) Statement of Profit & Loss

Answer: C

Question51: A Ltd. issued 1,000, 10% debentures of Rs. 100 each at a premium of 5%. What will be the total amount of interest for one year :

a) Rs. 10,500

b) Rs. 10,000

c) Rs. 5,250

d) Rs. 5,000

Answer: B

Question52: The amount of debenture is returned to the holders at the end of

a) Predetermined maturity period

b) Company

c) Current Year

d) None of the options

Answer: Predetermined maturity period

Question53: A debenture of company possesses the characteristics

a) All of the options

b) Written promise

c) Face value

d) Rate of interest

Answer: All of the options

Question54: Debenture is redeemable (payable) at a fixed and specified period of time which is called

a) Maturity period.

b) Long Term Loan Period

c) Short Term Loan Period

d) None of the options

Answer: Maturity period.

Question55: At the time of liquidation, first priority is given to the at the time of repayment.

a) Debenture Holder

b) Share Holder

c) Both

d) None of the options

Answer: Debenture Holder

Question56: Person holding debenture is known as

a) Debenture Holder

b) Share Holder

c) Both

d) None of the options

Answer: Debenture Holder

Question57: The interest paid on debentures is a

a) Charge against profit

b) Net Profit

c) Reserve & Surplus

d) None of the options

Answer: Charge against profit

Question58: Which are can be converted into equity shares of the issuing company after a predetermined period of time

a) Convertible debentures

b) Non convertible debentures

c) Secured Debenture

d) Unsecured Debentures

Answer: Convertible debentures

Question59: Convertible debentures can be

a) Both

b) Partly Convertible Debentures

c) Fully convertible Debentures

d) None of the options

Answer: Both

Question60: X Co Ltd purchased assets worth RS 28,80,000. It issued debentures of Rs. 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is

a) Rs. 30,000

b) Rs.32,000

c) Rs.35,000

d) None of the options

Answer: Rs. 30,000

Question61: Discount on issue of debentures is shown under the following head in the Balance Sheet

a) Miscellaneous expenditure

b) Profit and loss account

c) Debentures account

d) All of the options

Answer: Miscellaneous expenditure 

Question62: When debentures are issued at par and are redeemable at a premium, the loss on such an issue debited to

a) Loss on issue of debentures account

b) Profit and loss account

c) Profit and loss account

d) None of the options

Answer: Loss on issue of debentures account

Question63: Excess value of net assets over purchase consideration at the time of purchase of business is credited to

a) Capital reserve

b) General reserve

c) Vendors account

d) None of the options

Answer: Capital reserve

Question64: When all the debentures are redeemed, balance in the debentures redemption fund account is transferred to

a) General reserve

b) Capital reserve

c) Capital reserve

d) None of the options

Answer: General reserve

Question65: Own debentures are those debentures of the company which

a) The company purchase from the market and keeps them as investments

b) The company allots to its own promoters

c) The company allots to its own promoters

d) All of the options

Answer: The company purchase from the market and keeps them as investments

Question66: Profit on cancellation of own debentures is transferred to

a) Capital reserve

b) Profit and loss appropriation account

c) Debenture redemption reserve

d) None of the options

Answer: Capital reserve

Question67: When debentures are redeemed out of profits, an equal amount is transferred to

a) Debenture redemption reserve

b) General reserve

c) Capital reserve

d) All of the options

Answer: Debenture redemption reserve

Question68: Profit on sale of debenture redemption fund investments in the first instance is credited to

a) Debenture redemption fund account

b) Profit and loss appropriation account

c) General reserve account

d) None of the options

Answer: Debenture redemption fund account

Question69: Debentures which can be transferred by way of delivery and the company does not keep any record of the debenture holders

a) Bearer Debenture

b) Simple or Naked debentures

c) Mortgage debentures

d) Secured Debentures

Answer: Bearer Debenture

Question70: When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue

a) Loss on issue of debentures account

b) Debentures account

c) Premium on redemption of debentures account

d) None of the options

Answer: Loss on issue of debentures account

Question71: The balance of sinking fund investment account after the realisation of investments is transferred to

a) Sinking fund account

b) Profit and loss account

c) Debentures account

d) None of the options

Answer: Sinking fund account

Question72: Issue of Debenture at more than face value, Called

a) Issue of debenture at premium

b) Issue of debenture at par

c) Both

d) None of the options

Answer: Issue of debenture at premium

Question73: Debentures can be issued

a) Both

b) Issue of debenture at premium

c) Issue of debenture at par

d) None of the options

Answer: Both

Question74: Loss on issue of debenture is written off each year in proportion to amount of debenture which reduces with every instalment paid, Called

a) Proportion Method

b) Equal instalment method

c) Both

d) None of the options

Answer: Proportion Method

Question75: When debentures are redeemed after fixed period here loss is spread equally over life of debenture therefore called

a) Equal instalment method

b) Proportion Method

c) Both

d) None of the options

Answer: Equal instalment method

Question76: The loss on issue of debentures is fictitious asset and shown in Balance Sheet

a) Assets side

b) Liabilities Side

c) Both

d) None of the options

Answer: Assets side

Question77: Insert on Debentures is calculated

a) At a fixed rate on its face value

b) At a fixed rate on its Par value

c) At a average rate on its Par value

d) None of the options

Answer: At a fixed rate on its face value

Question78: Insert on Debentures is

a) Change in Profit

b) Charge on profit

c) Both

d) None of the options

Answer: Change in Profit

Question79: Debenture Application Account is a

a) Personal Account

b) Real Account

c) Nominal Account

d) None of the options

Answer: Personal Account

Question80: Debenture Allotment Account is a.

a) Personal Account

b) Nominal Account

c) Real Account

d) None of the options

Answer: Personal Account

Question81: Premium on Redemption of Debentures Account is

a) Personal Account

b) Real Account

c) Capital A/c

d) None of the options

Answer: Personal Account

Question82: On 1st April 2007, Sunrise Limited issued 5,000, 8% debentures of Rs. 100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2008?

a) Rs.38,000

b) Rs.42,000

c) Rs.40,000

d) Rs.25,000

Answer: C

Question83: Luxor Pens Ltd. issued 10,000,7% Debentures of Rs. 100 each at a discount of Rs. 4 redeemable at a premium of Rs. 6. It will write off Loss on Issue of Debentures

a) from Securities Premium Reserve.

b) from Statement of Profit and Loss.

c) from General Reserve.

d) None of these.

Answer: B

Question84: Which of the following statement is Correct?

a) A debentureholder is an owner of the company.

b) A debentureholder can get his money back only on the liquidation of the company.

c) A debenture issued at a discount can be redeemed at a premium.

d) A debentureholder receives interest only in the event of profits.

Answer: C

Question85: In the Balance Sheet of a company, interest accrued and due on debentures is shown under the main head

(a) Share Capital.

(b) Reserves and Surplus.

(c) Current Liabilities.

(d) Non-current Liabilities.

Answer: C

Question86: Debenture holders are :

a) Owners of the Company

b) Debtors of the Company

c) Creditors of the Company

d) Promoters of the Company

Answer: C

Question87: 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

Answer: A

Question88: 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 These

Answer: C

Question89: X Ltd. purchased a building for Rs.60,00,000 payable as 20% in Cash and balance by allotment of 8% debentures of Rs.500 each at a premium of 20%. Number of debentures issued will be :

a) 9,600

b) 8,000

c) 12,000

d) 10,000

Answer: B

Question90: Sunrise Ltd purchased a building for Rs.5,00,000 payable as 15% in cash and balance by allotment of 9% debentures of Rs. 100 each at a premium of 25%. Number of debentures issued will be :

a) 4,250

b) 4,000

c) 5,000

d) 3,400

Answer: D

Question91: If Vendors are issued debentures of Rs.80,000 in consideration of net assets of Rs. 1,00,000, the balance of Rs.20,000 will be credited to :

a) Statement of Profit & Loss

b) Goodwill Account

c) General Reserve Account

d) Capital Reserve Account

Answer: D

Question92: The debentures whose principal amount is not repayable by the company during its life time, but the payment is made only at the time of Liquidation of the company, such debentures are called :

a) Bearer Debentures

b) Redeemable Debentures

c) Irredeemable Debentures

d) Non-Convertible Debentures

Answer: C

Question93: Debenture Application Account is in the natutre of

a) Real Account

b) Personal Account

c) Nominal Account

d) None of the above

Answer: B

 Question94: Discount on issue of Debentures is in the nature of

a) Revenue loss

b) Capital loss

c) Deferred Revenue Expenditure

d) None of the above

Answer: B

Question95: Debentures are part of

a) Shareholders’Funds.

b) Borrowed Funds.

c) Borrowings from Bank.

d) None of these.

Answer: B

Question96: Debentures are shown in the Balance Sheet of a company under the head of

a) Non-current Liabilities.

b) Current Liabilities.

c) Share Capital.

d) None of these.

Answer: A

Question97: Debentureholders are

a) owners of the company.

b) lenders of the company.

c) vendors of the company.

d) customers of the company.

Answer: B

Question98: When debentures of Rs. 1,00,000 are issued as Collateral Security against a loan of Rs. 1,50,000, the entry for issue of debentures will be :

a) Credit Debentures Rs. 1,50,000 and debit bank A/c Rs. 1,50,000

b) Debit Debenture Suspense A/c Rs. 1,00,000 and Credit Bank A/c Rs. 1,00,000

c) Debit Debenture Suspense A/c Rs. 1,00,000 and Credit Debentures A/c Rs. 1,00,000.

d) Debit Cash A/c Rs. 1,50,000 and Credit Bank A/c Rs. 1,50,000

Answer: C

Question99: Interest on debentures issued as a collateral security is paid on :

a) Nominal value of debentures

b) No interest is paid

c) Face value of debentures

d) Paid up value of debentures

Answer: B

Question100: Loss on Issue of Debentures is written off:

a) In the year of the issue of debentures

b) During the life of the debentures

c) Within 3 years of the issue of debentures

d) In the year of redemption of debentures

Answer: A

Question101: 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.

c) They cannot be issued as collateral security.

d) They can be issued partly on credit and partly in cash.

Answer: B

Question102: Discount on issue of debentures account is a

• a) Fictitious Asset
• b) Current Asset
• c) Fixed Asset
• d) Current liability

Answer: Fictitious Asset

Question103: Securities Premium received on debentures is a

• a) Capital Profit
• b) Current Asset
• c) Capital Loss
• d) None of the options

Answer: Capital Profit

Question104: Shareholders get dividend, Debenture holders will get

• a) Interest
• b) Shares
• c) Bonus
• d) Profit

Answer: Interest

Question105: Debenture is acknowledgment of debt and a contract for the repayment of principal amount with

• a) Interest
• b) Premium
• c) Dividend
• d) None of the options

Answer: Interest

Question106: debentures can be issued under the ________ of company

• a) Common seal
• b) Rules & Principles
• c) Companies Act
• d) None of the options

Answer: Common seal

Question107: A debenture is

• a) An external equity
• b) Owners equity
• c) An internal equity
• d) Payment of Profit

Answer: An external equity

Question108: At the time of liquidation the payment to debenture holders is made on the priority bases before the

• a) Payment of Share Capital
• b) Payment of Dividend
• c) Payment of Profit
• d) Payment of Profit

Answer: Payment of Share Capital

Question109: A Company can issue its debentures a

• a) All of the options
• b) At Par
• c) At Premium
• d) At Discount

Answer: All of the options

Question110: Non-Convertible Debentures

• a) Cannot be converted into shares
• b) Cannot be redeemed
• c) Cannot not be issued
• d) None of the options

Answer: Cannot be converted into shares

Question111: Debenture holders do not have right for

• a) All of the options
• b) Dividend
• c) Profit
• d) Voting Right

Answer: All of the options 

 

Question112: When a company issue its debentures at discount, the amount of discount is considered as a:

• a) Capital loss
• b) Normal Loss
• c) Capital gain
• d) Reserve & Surplus

Answer: Capital loss

Question113: Debenture forms part of

• a) Loan
• b) Capital
• c) Fund
• d) None of the options

Answer: Loan

Question114: Is payable even if there are no profits

• a) Interest.
• b) Dividend
• c) Commission
• d) Secured

Answer: Interest.

Question115: Debentures payable to a holder of certificate is called

• a) Bearer.
• b) Unregistered
• c) Secured
• d) None of the options

Answer: Bearer.

Question116: Debentures payable to person whose name appears both on Debenture Certificate and companys register is called

• a) Registered.
• b) Unregistered
• c) Bearer
• d) None of the options

Answer: Registered.

Question117: Debentures which have the charge on the property of the company is

• a) Secured.
• b) Unsecured
• c) Registered
• d) None of the options

Answer: Secured.

Question118: Debenture which are repayable only on the happening of an event of winding up is called

• a) Both
• b) Irredeemable
• c) Perpetual
• d) None of the options

Answer: Both

Question119: Types of debentures on the basis of security

• a) Both
• b) Secured debentures
• c) Unsecured debentures
• d) None of the options

Answer: Both

Question120: Types of debentures on the basis of redemption

• a) Both
• b) Redeemable
• c) Non-Redeemable
• d) None of the options

Answer: Both