Debentures
MCQs on "Debentures": Find the multiple choice questions on "Debentures", frequently asked for all competitive examinations.
Here are a few MCQs on Debentures for your better understanding of the topic.
Q:1.
Debenture qualifies the owner towards
- A. Company’s voting rights.
- B. Firm’s profits share.
- C. Fixed-rate interest.
- D. Fixed dividend.
Q:2.
Perpetual debentures are known as
- A. Unsecured debentures.
- B. Irredeemable debentures.
- C. Secured debentures.
- D. None of the above.
Q:3.
You cannot use debenture premium to
- A. Write off the capital loss.
- B. Write off the premium on redemption of shares or debentures.
- C. Pay dividends.
- D. Write off discount on issue of shares.
Q:4.
What is secured debenture known as?
- A. Naked debentures.
- B. Mortgage debentures.
- C. Unsecured debentures.
- D. None of the above.
Q:5.
Loss on the issue of debenture is
- A. Current asset.
- B. Intangible asset.
- C. Current liability.
- D. Miscellaneous expense.
Q:6.
After redemption, the balance in the debenture sinking fund is transferable to
- A. Capital redemption reserve.
- B. Sinking fund investment a/c.
- C. Debentures a/c.
- D. General reserve.
Q:7.
Which is not a method of debt redemption?
- A. Sinking fund.
- B. Refunding.
- C. Repudiation.
- D. Terminable annuities.
Q:8.
For convertible debentures
- A. Interest is not paid if the company is at loss.
- B. Interest is payable.
- C. Equity shares can be allotted to debenture holders.
- D. Accumulated interest payable is converted into equity.
Q:9.
By what method can large companies raise short-term finance?
- A. Account receivable credit.
- B. Trade credit.
- C. Deferred income.
- D. Commercial paper.
Q:10.
What is the rate of commission payable on the issue of debentures?
- A. 3%
- B. 2%
- C. 4.5 %
- D. 2.5%
