The directors of S Limited wish to raise funds for expansion. They are undecided whether to issue
additional ordinary shares or additional 5% debentures.
REQUIRED
Complete the table by placing a tick (3) in the correct column to indicate whether each
statement is true or false.
The first one has been completed as an example.
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true
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false
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debentureholders receive interest
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√
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debenture holders receiveavariablerate ofinterest
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debenturesareusuallyincludedinthenon-currentliabilities sectionof thestatement of financial position
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debentureshaveapriorclaimintheeventofthecompany beingwoundup
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debentureholdersareentitledtovoteattheannualgeneral meeting
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debenturesareoftensecured onthe non-currentassets of thecompany
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