Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Which type of debenture does not have a specific charge on the assets of the company?
Options:
Secured debenture
Unsecured debenture
Either option 1 or 2
Both of these
Correct Answer:
Unsecured debenture
Explanation:
Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued.