Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Which of the following debentures cannot be converted into shares or into any other securities by the company?
Options:
Convertible Debentures
Non-Convertible Debentures
Zero Coupon Rate Debentures
Irredeemable Debentures
Correct Answer:
Non-Convertible Debentures
Explanation:
The debentures which cannot be converted into shares or in any other securities are called nonconvertible debentures. Most debentures issued by companies fall in this category.