Question : Which of the following statements is true?

Option 1: Interest on debentures is calculated at fixed rate on its nominal (face) value payable quarterly, half yearly or yearly as per the terms of issue.

Option 2: Rate of interest is prefixed to the debenture, is payable even if the company incurs a loss.

Option 3: Interest on debentures is a charge against profit.

Option 4: All of the above 

Question : Which of the following statements is not true?

Option 1: Interest on debentures is a charge against a profit of the company and is payable whether the company earns a profit or incurs a loss.

Option 2: Interest on debentures is calculated at a fixed rate of interest on the nominal (face) value.

Option 3: Interest is payable on debentures issued as collateral security.

Option 4: Balance in Debentures' Interest Account is transferred to Statement of Profit and Loss (Finance Cost) at the end of the year.

Question : Which of the following statements is not true?

Option 1: Interest on debentures is a charge against a profit of the company and is payable whether the company earns a profit or incurs a loss.

Option 2: Interest on debentures is calculated at a fixed rate of interest on the nominal (face) value.

Option 3: Interest is payable on debentures issued as collateral security.

Option 4: Balance in Debentures' Interest Account is transferred to Statement of Profit and Loss (Finance Cost) at the end of the year.

Question : Which of the following statements is true?

Option 1: The debenture is a borrowing of the company.

Option 2: Debenture is normally secured by way of charge on the assets of the company.

Option 3: Interest on Debentures is a charge against profit.

Option 4: All of the above 

Question : Which of the following statements is true?

Option 1: The debenture is a borrowing of the company.

Option 2: Debenture is normally secured by way of charge on the assets of the company.

Option 3: Interest on Debentures is a charge against profit.

Option 4: All of the above