Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Debentures indicate which of the following?
Options:
Short-term Borrowings of a Company
Directors
The Investment of Equity-Shareholders
Long-term Borrowings of a Company
Correct Answer:
Long-term Borrowings of a Company
Explanation:
Long term borrowings are the types of loan that will be repayable after 12 months. The following are types of long-term borrowings: a. Bonds or Debentures have a debt or loan that is borrowed from the market at a fixed rate of interest.