Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
What is a debenture?
Options:
Loan certificate
Credit certificate
Cash certificate
None of these
Correct Answer:
Loan certificate
Explanation:
Debenture is used to issue the loan by government and companies. The loan is issued at the fixed interest depending upon the reputation of the companies. When companies need to borrow some money to expand themselves they take the help of debentures.