{"id":44551,"date":"2024-04-15T21:45:21","date_gmt":"2024-04-15T21:45:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44551"},"modified":"2024-04-15T21:45:21","modified_gmt":"2024-04-15T21:45:21","slug":"premium-on-redemption-of-debentures-account-until-redeemed-is-shown-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/premium-on-redemption-of-debentures-account-until-redeemed-is-shown-in\/","title":{"rendered":"Premium on redemption of debentures account, until redeemed, is shown in-"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Current liabilities&#8221; option2=&#8221;Current provisions&#8221; option3=&#8221;Provisions for liabilities&#8221; option4=&#8221;Long-term provisions&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. Long-term provisions<\/strong><\/p>\n<p>A premium on redemption of debentures account is a liability that arises when a company issues debentures at a premium. The premium is the difference between the face value of the debentures and the amount that the company actually receives when the debentures are issued. The company must set aside a provision for the redemption of the debentures, which is a liability that will be settled when the debentures are redeemed.<\/p>\n<p>The provision for the redemption of debentures is classified as a long-term provision because it is not expected to be settled within one year. Long-term provisions are reported in the balance sheet as non-current liabilities.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>Current liabilities are liabilities that are expected to be settled within one year.<\/li>\n<li>Current provisions are provisions that are expected to be settled within one year.<\/li>\n<li>Provisions for liabilities are provisions that are not expected to be settled within one year.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Current liabilities&#8221; option2=&#8221;Current provisions&#8221; option3=&#8221;Provisions for liabilities&#8221; option4=&#8221;Long-term provisions&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-44551","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Premium on redemption of debentures account, until redeemed, is shown in-<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/premium-on-redemption-of-debentures-account-until-redeemed-is-shown-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Premium on redemption of debentures account, until redeemed, is shown in-\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Current liabilities&#8221; 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