Shares and Debentures

Shares and Commercial Papers

Commercial Papers and Debentures

Zero Interest Bonds and Deep Discount Bonds

brokers

jobbers

tarawaniwalas

manidiwalls

True

False

True

False

Profit on redemption of debenture

Loss on redemption of debenture

Goodwill

None of these

Capital Reserve A/c

Profit and Loss A/c

General Reserve A/c

None of these

Market value

Face value

Present value of the stream of interest inflows

Average of par values and maturity value

None of the above

It is certificate of acknowledgement of debt

It is issued under a common seal

It is a part of long term borrowing

all the the above

A company can issue convertible debentures.

Debentures cannot be secured.

A company can issue redeemable debentures.

Debentures have no right to participate in profits over and above their fixed interest.

The carrying amount of debentures gets reduced each year at a rate of 20%.

Issue price and the carrying amount of debentures are equal.

At the time of redemption, the debenture holder will be paid the issue price.

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

A debenture holder is an owner of the company.

A debenture holder can get his money back only on the liquidation of the company.

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

A debenture holder receives interest only in the event of profits.

Debit asset A/c; Credit vendor A/c

Debit asset A/c; Credit bank A/c

Debit asset A/c; Credit debenture A/c

Debit debenture A/c; Credit asset A/c

revenue loss to be charged in the year of issue

capital loss to be written off from capital reserve

capital loss to be written off over the tenure of the debenture

capital loss to be shown as goodwill

Debentures can be issued for cash or consideration other than cash or as collateral security

Debentures can not be forfeited for non-payment of call money.

A company can buy its own debentures.

A debentures issued at a discount can be redeemed at a premium.

A company can issue redeemable debentures

A company can issue debentures with voting rights

A company can buy its own shares

A company can buy its own debentures

A company can issue bearer debentures.

A company can issue convertible debentures.

A company can issue redeemable debentures.

A company can issue debentures with voting rights.

2%

2.5%

3%

5%

10%

7%

6%

5%

Personal Account

Real Account

Nominal Account

None of these

secured bond

debenture

obligation bond

specific bond

Money market investment

Capital market investment

Gilt-edged securities

Any of these depending on certain factors

Rs. 2000

Rs. 1800

Rs. 1200

Rs. 600

Redeemable

Irredeemable

Convertible

Non-convertible

Purchase of own debentures in the open market

Converting them into new class of debentures

Converting them into shares

Any of the methods mentioned in (A), (B) and (C)

Revenue receipt

Capital receipt

Neither revenue nor capital receipt

Both revenue and capital receipts

$\dfrac {\text {Market price per equity share}}{\text {Number of shares}}$

$\dfrac {\text {Gross profit}}{\text {Net sales}}\times 100$

$\dfrac {\text {Operating costs}}{\text {Net sales}}\times 100$

$\dfrac {\text {Net profit after tax and preference dividend}}{\text {Number of Equity shares}}$

The profit sharing ratio

Equal ratio

The ratio of their capitals standing before profit or loss on realization has been transferred

The ratio of their capitals standing after profit or loss on realization has been transferred

Personal Account

Real Account

Nominal Account

None of the above

$16\%$

$14\%$

$15\%$

$15.42\%$

debt instruments which acquire equity status at the issuers option

debt instruments which retain their debt character and cannot acquire equity status

debt instruments which acquire equity status with the permission of Registrar of Companies

debt instruments which acquire equity status on maturity

dividend

bonus

interest

commission

Net worth

Owners equity

Fixed interest liability

Non-redeemable shares

voting right

claim dividend

claim bonus shares

all the above

owners of the company

lenders of the company

debtors of the company

trustee of the company

They can be issued for cash

They can be issued for consideration other than cash

They can be issued as collateral security

They can be issued in lieu of dividends

interest

principal amount

both (a) & (b)

none of the above

Equity Shares

Preference Shares

Redeemable Preference Shares

Debentures

Equity is owners' stake and the debentures is a debt

Rate of interest on debentures is fixed

Debenture holders get preferential treatment over the equity holders at the time of liquidation

Interest on debentures is an appropriation of profits

Equity shares

Preference shares

Debentures 

All of these

Income bonds that require interest payments only when earnings permit.

Income bonds that are not require interest payments  when earnings permit.

Subordinated debt and rank behind convertible bonds.

A form of lease financing similar to equipment trust certificates.

Income bonds that require interest payments only when earnings permit

Income bonds that are not require interest payments only when earnings permit

Subordinated debt and rank behind convertible bonds

A form of lease financing similar to equipment trust certificates

Name of the debenture

Rate of interest

Date of issue debenture

All of the above

Preference shares dividend payable

Ordinary dividend payable by the company

Income tax payable by the company

Debenture interest payable

a written instrument acknowledging a debt written by its holder

an oral acknowledgement of debt by a company

a written instrument acknowledging a debt written by its company

None of these

Both (I) and (II) above

Both (I) and (III) above

Both (II) and (III) above

All of (I), (II), (III) and (IV) above.

Secured and unsecured Debentures

Redeemable Debentures and Irredeemable Debentures

Convertible Debentures and Non-convertible Debentures

Registered Debentures and Bearer Debentures

The company

The Trustees

The SEBI

The company Law Tribunal

$1$ month of the closure of issue

$3$ months of the closure of issue

$6$ months of the closure of issue

$1$ month before the opening of issue

the repayment of principal only

the payment of interest at a fixed rate only

the payment of interest at a fluctuating rate only

the repayment of principal and the payment of interest at a fixed rate.

Share Capital

Reserves & Surplus

Current Liabilities

Non-Current Liabilities

A Scheduled Bank

A Public Financial Institution

An Insurance Company

A partnership firm carrying on banking Business

All Debentures

Debentures with maturity of more than $18$ months

Debentures with maturity of lessthan $18$ months

Convertible Debentures

2, 3 and 4

1, 2 and 3

1 and 4

1, 2, 3 and 4

Debentures suspense A/c

Bank A/c

Debentures A/c

None of the above

Security

Redemption

Record

Priority

Interest is tax-deductible

It reduces WACC

Does not dilute owners control

All of the above

Equity Share Capital

Preference Share Capital

Debentures

Both A and B

Optional debentures

Flexible debentures

Convertible debentures

Non-convertible debentures

owners

debtors

creditors

promoters