Which of the following cannot be termed as owners' funds?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Debenture
A debenture represents a borrowed fund — it is a loan taken by the company that must be repaid with interest. In contrast, Equity, Retained Earnings, and Reserves and Surplus are owners’ funds, as they belong to shareholders and represent the company’s own capital.