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Question Practice

What does 'sinking fund' refer to in the context of debentures?

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

What does 'sinking fund' refer...

Single Answer MCQ
Q-00082515

What does 'sinking fund' refer to in the context of debentures?

1

Fund for paying dividends

2

Fund for replacing fixed assets

3

Reserve for repaying debentures at maturity

4

Investment in new projects

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Q1.

What is the difference between a debenture and a share?

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Q2.

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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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