Which of the following does not form part of shareholders fund?

Which of the following does not form part of shareholders fund?

  • A.
    ordinary shares
  • B.
    shares premium
  • C.
    profit
  • D.
    debenture
Correct Answer: Option D
Explanation

Debentures are a long-term security yielding a fixed rate of interest, issued by a company and secured against assets. It is a debt security issued by a company by a company to raise money. The holders are paid the amount lended with interest. They are not a source of equity financing

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