Description : Which one of the following securities cannot be issued by a Public Limited Company in India ? (A) Participating preference shares (B) Redeemable preference shares (C) Deferred shares (D) Debentures.
Last Answer : Answer: Deferred shares
Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000
Last Answer : Answer: Rs. 30,000
Description : The maximum rate of underwriting commission on debentures is– (A) 10% (B) 2•5% (C) 12•5% (D) 5%
Last Answer : Answer: 2•5%
Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares
Last Answer : Answer: Issue of fully paid bonus shares
Description : In case of a company, “Buy Back” is related to– (A) Prospectus (B) Shares (C) Debentures (D) Cheques
Last Answer : Answer: Shares
Description : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital
Last Answer : Answer: Plant acquired on account
Description : Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset
Last Answer : Answer: Meeting the cost of issue of shares or debentures
Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times
Last Answer : Answer: 4•06 times
Description : _________ are long term corporate bonds that are unsecured in nature. A. DCF B. Debentures C. Covenant D. CRAs
Last Answer : B. Debentures Explanation: A long-term security yielding a fixed rate of interest, issued by a company and secured against assets are known as debentures.
Description : A long-term security yielding a fixed rate of interest, issued by a company is called ________ A. Shares B. Debentures C. Bonds D. Both (A) and (C) E. None of the Above
Last Answer : B. Debentures Explanation: A debenture is a type of debt instrument that is not secured by physical assets or collateral. Instruments issued by companies are called debentures. The difference between the two is actually a function of where they are registered and pay stamp duty and how they trade.
Description : Long-term debt securities issued by the GOI or any of the State Government‟s or undertakings owned by them or by development financial institutions are called as ________ A. Shares B. Debentures C. Bonds D. Both (A) and (C) E. None of the Above
Last Answer : C. Bonds Explanation: Long-term debt securities issued by the Government of India or any of the State Government‘s or undertakings owned by them or by development financial institutions are called as bonds.
Description : A part of debt instruments that are converted into Equity shares in the future at notice of the issuer is called _________ A. Secured Debentures B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures
Last Answer : B. Partly Convertible Debentures (PCD) Explanation: A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.
Description : Under ______ debentures, if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors A. Secured Debentures B. ... ) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures
Last Answer : A. Secured Debentures Explanation: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors.
Description : In which of the following conversion the investors enjoy the same status as ordinary shareholders of the company? A. Secured Debentures B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures
Last Answer : C. Fully convertible Debentures (FCD) Explanation: These are fully convertible into Equity shares at the issuer‘s notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.
Description : In which of the following instruments the investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue. A. Non Convertible ... Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above
Last Answer : D. Optionally Convertible Debentures (OCD) Explanation: The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.
Description : Which of the following instruments retain the debt character and can not be converted in to equity shares? A. Non Convertible Debentures (NCD) B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above
Last Answer : A. Non Convertible Debentures (NCD) Explanation: Non Convertible Debentures instruments retain the debt character and can not be converted in to equity shares.
Description : Debentures are divided into different categories on the basis of which of the following? A. Convertibility B. Security C. Term D. Both (A) and (B) E. None of the Above
Last Answer : D. Both (A) and (B) Explanation: Debentures are divided into different categories on the basis of: convertibility of the instrument and Security. Debentures can be classified on the basis ... (OCD) Debentures can be classified on the basis of security into: Secured Debentures Unsecured Debentures
Description : If the company is insolvent , interest on debentures is payable upto the date of actual payment.
Last Answer : FALSE
Description : Which of the following is not an inflow of cash a) Sale of fixed asset b) Issue of debentures for cash c) Funds from operation d) Acquisition of assets
Last Answer : d) Acquisition of assets
Description : A project, which may not add to the existing profits, should be financed by _________ A. debentures. B. preference share capital. C. equity capital. D. public deposits.
Last Answer : A. debentures.
Description : Investment in which of the following is most risky? A. Equity shares. B. Preference shares. C. Debentures. D. Land.
Last Answer : C. Debentures.
Description : Which of the following securities proves a burden on finances of the company, when company is not earning profits? A. Equity shares. B. Preference shares. C. Redeemable preference shares. D. Debentures.
Last Answer : D. Debentures.
Description : Which of the following sources is not use for medium term financing? A. Issue of equity shares. B. Issue of debentures. C. Term loans from banks. D. Sale of current asset.
Last Answer : A. Issue of equity shares.