Explanation

Debentures are a form of long-term debt instrument used by companies to raise capital.

They are repayable after a fixed period and carry a fixed interest rate.

Explanation

Common equity includes common stock and retained earnings, representing shareholders’ ownership.

It reflects the residual interest in the assets after deducting liabilities.

Explanation

Retained earnings are profits kept in the company after paying dividends to shareholders.

They are reinvested in the business for growth, not distributed as cash.

Explanation

Debenture holders lend money to the company and receive interest, making them creditors.

They do not have ownership rights like shareholders.

Explanation

A Bill of Exchange must be accepted by the drawee to become legally binding.

Acceptance indicates the drawee's agreement to pay the specified amount on the due date.

Explanation

Explanation

A trial balance is prepared by taking the balances from ledger accounts.

It helps check the arithmetic accuracy of bookkeeping entries.

Explanation

Management accounting focuses on planning and decision-making for future operations.

It helps managers forecast, budget, and set strategic goals.

Explanation

The law of demand states that as the price of a commodity rises, the quantity demanded usually falls, and vice versa.

It defines an inverse relationship between price and quantity demanded.

Explanation

Gross National Product (GNP) includes the total domestic production plus net income earned from abroad.

It measures the economic output of a country's residents regardless of location.