Question :
A charge created on definite assets of a permanent nature, such as land, building, machinery, etc., is known as-------------
Option 1: Fixed charge
Option 2: Floating Charge
Option 3: Interest
Option 4: Fixed assets
Correct Answer: Fixed charge
Solution : Answer = Fixed charge
A charge created on specific assets of a permanent nature, like land, buildings, or machinery, is termed a "fixed charge." It provides lenders with a secure claim over those assets in case of default. This ensures that the specified assets are used to repay debts before other claims are settled. Hence, the correct option is 1.
When no specific asset but all assets (except those charged by way of fixed charge) are charged as security. A Floating Charge holder has a preference over an unsecured creditor for settling his claims, in the event of winding-up of the
The debentures which are secured by either a fixed charge or a floating charge on the assets of the company. A charge on the assets of the
Question : An asset which is not fictitious, but intangible in nature having realizable value is known as
An increase in the value of assets at the time of retirement of a partner is
Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile