39.What are Debentures?  A. Share capital  B. Short-term debt instruments  C. Long-term debt instruments  D. Equity investment

29.What is the primary purpose of debentures?  A. Ownership in a company  B. Fixed-rate interest payments  C. Voting rights  D. Venture capital funds

38.What are capital market instruments?  A. Financial institutions  B. Securities traded on the stock exchange  C. Market regulators  D. Bonds and debentures

What is the difference between shares and debentures

8% Debentures (2025) 250Administrative expenses 171Cash and cash equivalents 14Cost of sales 466Debenture interest 8Distribution costs 63Dividends paid 80Inventory at 31 December 2020 33Issued capital:Ordinary shares of $0.25 each at 31 December 2020 500Non-current assetsCost 1140Provision for depreciation at 1 January 2020 140Retained earnings at 1 January 2020 129Revenue 923Share premium at 31 December 2020 70Trade payables 42Trade receivables 792054 2054The following information is also available at 31 December 2020.1 Administrative expenses included insurance of $16 000 for four months ended31 January 2021.2 Depreciation should be provided on non-current assets at 25% per annum using the reducingbalance method. Depreciation charges should be allocated 20% to distribution costs and 80%to administrative expenses.3 The account of a credit customer, $3000, should be written off to administrative expenses asan irrecoverable debt.4 Debenture interest was outstanding for the second half of the year. The directors had issuedadditional debentures of $50 000 on 1 October 2020.

10% debentures issued to shareholders of a subsidairy company of face value 50 lakhs reedemable after 3 years. market interest is only 6% p.a