Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
What is the another name for Secured debentures ?
Options:
Naked Debentures
Mortgaged debentures
Long Term Debentures
Collateral Debentures
Correct Answer:
Mortgaged debentures
Explanation:
Secured debentures are also called as Mortgaged debentures. These debentures have some asset of the company as collateral security. Since the applicant's investment is protected against the asset of the company, it is called as a secured debenture.