Q. Every debenture holders is a ----------------
✅ Correct Answer: (B)
Creditor of the company
Financial Management MCQs and Notes
Q. The debentures are issued on the security of ----------------
✅ Correct Answer: (A)
Fixed assets
Q. The debentures are used only by those companies whose ------------
✅ Correct Answer: (A)
Goodwill is more
Q. The issue of debenture is done only by the --------------
✅ Correct Answer: (D)
Established and reputed companies
Q. The interest on debenture may be ---------------
✅ Correct Answer: (A)
Fixed liability
Q. If there is over capitalization in the company, the redemption of debenture can lead to---------------
✅ Correct Answer: (B)
Balanced capital structure
Q. Reserve is an ---------------
✅ Correct Answer: (A)
Additional part of profit
Q. Which is the current liability?
✅ Correct Answer: (D)
All of these
Q. “ A debenture is a document which either creates a debt or acknowledge it” . who said?
✅ Correct Answer: (A)
Justice Chitty
Q. Which shares are not redeemed during lifetime of the company?
✅ Correct Answer: (A)
Equity shares