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The following are the features of Debentures: (A) The payment of interest is a charge on profits and is to be paid even if there is no profit. (B)…

CUET UG 2025 — Accountancy Company Accounts

2025mcqmedium

The following are the features of Debentures:

(A) The payment of interest is a charge on profits and is to be paid even if there is no profit.
(B) The debentures, which are issued for a specified period are repayable on the expiry of that period.
(C) If the debentures are generally secured, they carry a fixed or floating charge over the assets of the company.
(D) Debentures can not be converted into shares in any case.

Choose the correct answer from the options given below:

Official previous-year question

Held on 3 Jun 2025 · Verified 13 Jul 2026.

Options

  1. A

    (A), (B) and (D) only

  2. B

    (A), (B) and (C) only

  3. C

    (A), (B), (C) and (D)

  4. D

    (B), (C) and (D) only

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