Debentures are shown in Balance Sheet under: MCQ with Answer and Explanation

Question Report Error

Debentures are shown in Balance Sheet under:

A. Share capital

B. Reserves and surplus

C. Long-term borrowings

D. Current liabilities

Answer: Option C

Solution (By JKExamLibrary)

Debentures are long-term borrowings unless they are due within 12 months, then current liabilities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Which of the following is not a method of depreciation?

A. Straight-line

B. Perpetual inventory method

C. Sum of years' digits

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Correct Answer: Option B

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Perpetual inventory method is a method of inventory valuation, not depreciation.

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The petty cash book is balanced:

A. At the end of the month

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C. At the end of the year

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Correct Answer: Option B

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Under imprest system, petty cash book is closed when cash is replenished, not periodically.

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NFRA has jurisdiction over:

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Correct Answer: Option D

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NFRA covers listed companies and such class of unlisted companies as prescribed.

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