Accounting

Important role of Debentures as a source of finance

Important role of Debentures as a source of finance

Debentures are a long-term source of finance. Debentures as a source of finance suit companies that have regular earnings to service the debt have a higher proportion of fixed assets in the structure of their assets which offers adequate security and motivates investors. A debenture is a form of .....

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Importance of Debentures

Importance of Debentures

An issue of debenture plays a great role in long-term planning and decision-making. Debentures are a source of finance mainly suited for companies that have a constant source of earnings to service the debt. In a modern competitive business era, every company needs funds for any business opportun.....

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Differences between Shares and Debentures

Differences between Shares and Debentures

Shares and debentures both are ways to raise capital however debentures are borrowed capital whereas shares are a portion of the company’s capital itself. The smallest division of the company’s capital is known as shares. The shares are movable i.e. transferable and consist of a distinctive n.....

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Auditor Opinions

Auditor Opinions

A credential that follows financial statements is an auditor’s opinion. It is based on an analysis of the processes and documents used to create the statements and offers an opinion on whether the financial statements contain material mistakes. It likewise in a roundabout way advises the cl.....

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Types of Debentures on the Basis of Convertibility

Types of Debentures on the Basis of Convertibility

Debentures are the most popular form of debt capital. A debenture is a written tool accepting a debt under the general authentication of the enterprise. It is an agreement to be agreed between the corporation and the debenture holders that decides the characteristics of a debenture. As in the cas.....

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Types of Debentures on the Basis of Redemption

Types of Debentures on the Basis of Redemption

The term ‘debenture’ is derived from the Latin word ‘debere’ which refers to borrow. It represents a superior and refined form of the age-old promissory note. The debenture classification is based on their tenure, redemption, mode of redemption, convertibility, security, transferability, .....

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Types of Debentures on the Basis of Security

Types of Debentures on the Basis of Security

Debentures can be secured in nature, it may be unsecured in nature. A debenture is a written tool accepting a debt under the general authentication of the enterprise. A secured debenture is secured by the charge on some asset or set of assets which is known as secured or mortgage debenture and an.....

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Types of Debentures on the Basis of Record Point of View

Types of Debentures on the Basis of Record Point of View

Debentures are the most popular form of debt capital. The debenture classification is based on their tenure, redemption, mode of redemption, convertibility, security, transferability, type of interest rate, coupon rate, etc. Basically, a debenture represents a superior and refined form of the age.....

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Disadvantages of debentures

Disadvantages of debentures

A debenture refers to a document that explicitly details the terms and conditions of a loan to a company. They are the liability of the company which has to be repaid in a specific time period; however, a feasible alternative of term loans for companies. The primary aim of a company debenture is .....

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Advantages of Debentures

Advantages of Debentures

The term debenture is derived from the Latin word “debere” which means “to owe a debt”. Debentures are a debt instrument used by companies and government to issue the loan. A debenture may be defined as a document issued by the company as evidence of debt. The loan is issued to corporates.....

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Features of Debentures

Features of Debentures

Debentures are nothing but documents. In other words, they possess documentary value. Debentures are some of the debt instruments which can be used by government, companies, organization for the purpose of issuing the loan. It is basically just a bond. It acknowledges the fact that the company ha.....

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Secured Debentures

Secured Debentures

A debenture is essentially a loan agreement – but they come in many forms and can mean different things in different markets. A secured debenture means bonds that are issued with collateral. When any particular or specified property of the company is offered as security to the debenture-holders.....

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