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Question Practice

How is the interest on debentures treated in financial accounts?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Issue and Redemption of Debentures
Question Bank

How is the interest on debentu...

Single Answer MCQ
Q-00082491

How is the interest on debentures treated in financial accounts?

1

A charge on profits

2

An appropriation of profits

3

A liability of shareholders

4

A part of operating expenses

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Q1.

What is the difference between a debenture and a share?

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Q2.

Explain the concept of debentures issued as collateral securities.

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Q3.

Describe the guidelines provided by SEBI for creating Debenture Redemption Reserve.

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Q4.

Can a company purchase its own debentures in the open market? Explain.

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