📝 One-liners · 66 cards
Company accounts - II
What is a debenture in the context of company accounts?
A debenture is a long-term debt instrument issued by a company to borrow money at a fixed rate of interest, and debenture holders are creditors of the company, not owners.
What is the nominal value of a debenture also known as?
Face value or par value of the debenture certificate.
What is the difference between redeemable and irredeemable debentures?
Redeemable debentures are repaid by the company after a specified period, whereas irredeemable (perpetual) debentures have no fixed repayment date and remain outstanding indefinitely.
What does 'issue of debentures at a premium' mean in company accounts?
Debentures issued above their face value to investors.
🔒
Unlock 66 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Company accounts - II.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days