Practice Provision for Redemption - 2.4.3 | Chapter 2: Joint Stock Company Accounts | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does 'redemption' refer to in finance?

๐Ÿ’ก Hint: Think about loans companies take.

Question 2

Easy

Name one method of redeeming debentures.

๐Ÿ’ก Hint: How can a company return borrowed money?

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is a Debenture Redemption Reserve?

  • A savings fund for shareholders
  • A reserved amount for redeeming debentures
  • Funds allocated for marketing

๐Ÿ’ก Hint: Focus on its purpose to protect the companyโ€™s obligations.

Question 2

True or False: Companies can only redeem debentures as one lump sum.

  • True
  • False

๐Ÿ’ก Hint: Think about flexible repayment options.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company plans to redeem โ‚น1,00,000 of its debentures using lump sum payment but unexpectedly faces cash flow issues. Discuss how this impacts their financial statements.

๐Ÿ’ก Hint: Consider the impact on the cash flow statement and how it reflects overall company health.

Question 2

Explain how the provision for redeemable debentures can affect a companyโ€™s long-term financial planning.

๐Ÿ’ก Hint: What long-term steps must management consider with these debts on its books?

Challenge and get performance evaluation