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Question
State to whether the following statement is True/False.
The acknowledgement of debt under common seal of company in termed as share.
Options
True
False
Solution
False
Explanation: The acknowledgement of debt under the common seal of a company is termed as debenture. Debentures carry a fixed rate of interest that is a charge against company profits. Debentures are paid back after the expiry of the specified term for which they were issued.
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Answer in a sentence only.
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Write one word/term/phrase which can substitute the following
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The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures which are converted in to shares.
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Match the items given in Column I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act 2013.
| Column I | Column II | ||
| (I) | Loose Tools | (a) | Intangible fixed assets |
| (II) | Patents | (b) | Other current assets |
| (III) | Prepaid insurance | (c) | Long term Borrowings |
| (IV) | Debentures | (d) | Inventories |
| (V) | Machinery | (e) | Tangible Fixed assets |
