Question : What is true regarding debentures issued as collateral security?
Option 1: A debenture issue that is made by a company and given to a lender as secondary security is referred to as debenture issued as collateral security.
Option 2: A debenture issue that is made by a company and given to a lender as primary security is referred to as debenture issued as collateral security.
Option 3: A debenture issue that is made by a company and given to a lender as main security is referred to as debenture issued as collateral security.
Option 4: Both 2 and 3
Correct Answer: A debenture issue that is made by a company and given to a lender as secondary security is referred to as debenture issued as collateral security.
Solution : A debenture issue that is made by a company and given to a lender as secondary security is referred to as debenture issued as collateral security. Hence, the correct option is 1.
Question : Which of the following statements is true?
Question : Which of the following statements is false?
Question : When the Company decided to record the issue of Debentures as Collateral Security: Which of the following accounts should be debited?
Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited?
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