Question

………….is an acknowledgement that the company has borrowed a certain amount of money
which it promises to repay at the future date.
(a) Debentures (b) Equity shares
(c) Preference shares (d) Retained Earnings

Answer 1

Answer:

Equity shares is the answer

I HOPE it helps you

Answer 2

Answer to the given question

Explanation:

• Debenture-holders are termed as a creditors of company.

• Debentures preferred by the investors who want fixed-income at the lesser risk.

• Debentures are the long-term debt instruments which have a fixed-rate of the interest.
• The issue of the debentures is suitable in the situation when the sales & earnings are relatively-stable.

• Debentures are fixed-charge funds & do not take participation in the profits of the company.
• Option A is the correct answer.