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Which of the following statements is false?

  • a)
    At maturity, debenture holders get back their money as per the terms and conditions of redemption 

  • b)
    Debentures can be forfeited for non payment of call money 

  • c)
    In company’s balance sheet, debentures are shown under secured loans 

  • d)
    Interest on debentures is charged against profits 

Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following statements is false?a)At maturity, debenture ho...
The false statement is:

- B: Debentures can be forfeited for non-payment of call money.

Explanation:
- Debentures cannot be forfeited for non-payment of call money, unlike shares which can be forfeited for non-payment of allotment or call money.
- Debentures are long-term debt instruments issued by companies to raise funds and typically do not have the feature of forfeiture for non-payment of call money.
- Forfeiture is a concept more relevant to shares, not debentures.

Thus, option B is the false statement.
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Most Upvoted Answer
Which of the following statements is false?a)At maturity, debenture ho...
Debenture is a debt for the company .It is like loan for the company and it is secured by creating charge on assets of the company. only shares are forfeited for non-payment of call money not debentures. hence option B is false
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Community Answer
Which of the following statements is false?a)At maturity, debenture ho...
Restructuring, debenture holders have a higher claim on assets compared to equity shareholdersd)Debenture holders are entitled to receive fixed interest payments at regular intervals
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Which of the following statements is false?a)At maturity, debenture holders get back their money as per the terms and conditions of redemptionb)Debentures can be forfeited for non payment of call moneyc)In company’s balance sheet, debentures are shown under secured loansd)Interest on debentures is charged against profitsCorrect answer is option 'B'. Can you explain this answer?
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Which of the following statements is false?a)At maturity, debenture holders get back their money as per the terms and conditions of redemptionb)Debentures can be forfeited for non payment of call moneyc)In company’s balance sheet, debentures are shown under secured loansd)Interest on debentures is charged against profitsCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is false?a)At maturity, debenture holders get back their money as per the terms and conditions of redemptionb)Debentures can be forfeited for non payment of call moneyc)In company’s balance sheet, debentures are shown under secured loansd)Interest on debentures is charged against profitsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is false?a)At maturity, debenture holders get back their money as per the terms and conditions of redemptionb)Debentures can be forfeited for non payment of call moneyc)In company’s balance sheet, debentures are shown under secured loansd)Interest on debentures is charged against profitsCorrect answer is option 'B'. Can you explain this answer?.
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