Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Debentures are convertible into which of the following?

Options:

Debts

Reserves

Shares

Non-performing assets

Correct Answer:

Shares

Explanation:

The correct answer is option 3- Shares.

Debentures are convertible into Shares.

Convertible debentures are debt instruments issued by a company that can be converted into equity shares at a later date, typically at the option of the holder or under predetermined conditions.