Accounting

Share Capital

Share Capital

Share capital is the money a company raises by issuing common or preferred stock. A company’s share capital is the money it raises from selling common or preferred stock. It refers to the funds that a company raises from selling shares to investors. For example, the sale of 1,000 shares at .....

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Characteristics of Debentures

Characteristics of Debentures

Debentures are ranked as creditors of the company. These are the popular method the companies use to procure long-term finance for their financial needs. A debenture is long-term debt and issued under the common seal of the company. The funds raised through debentures represent the debts, and the.....

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Concept of Debentures

Concept of Debentures

A debenture is a type of bond or other debt instruments that is unsecured by collateral. It is used to issue the loan by government and companies. The total capital of joint-stock companies can be divided into owner’s capital and borrowed capital. The loan is issued at the fixed interest de.....

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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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