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Which combination of following statements are Incorrect (False) about debentures- (A) Debenture is a part of owned capital. (B) The payment of…

CUET UG 2025 — Accountancy Company Accounts

2025mcqmedium

Which combination of following statements are Incorrect (False) about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

(C) The debentures cannot be issued at a discount of more than 10% of the face value.

(D) Debentures cannot be converted into shares.

(E) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

Official previous-year question

Held on 14 May 2025 · Verified 13 Jul 2026.

Options

  1. A

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

  2. B

    (A), (C) and (E) only

  3. C

    (A), (B), (C) and (E)

  4. D

    (A), (C) and (D) only

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