Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
What is the another name for Irredeemable Debentures?
Options:
Redeemable Debentures
Perpetual Debentures
Specific Coupon Rate Debentures
Zero Coupon Rate Debentures
Correct Answer:
Perpetual Debentures
Explanation:
Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures.