Easy

Which of the following cannot be termed as owners' funds?

Debenture

Equity

Retained earning

Reserves and surplus

✅ Correct Option: 1

Option 1 -> Debentures are debt instruments representing borrowed capital; debenture holders are creditors, not owners of the company. Option 2 -> Equity represents ownership capital contributed by shareholders who are the actual owners of the company. Option 3 -> Retained earnings are accumulated profits kept in the business, which belong to the owners and form part of shareholders' equity. Option 4 -> Reserves and surplus are appropriations of profit set aside for specific purposes, belonging to the owners as part of shareholders' funds. Hence, Option 1: Debenture -> Debentures represent borrowed funds or debt capital, making debenture holders creditors rather than owners. They must be repaid with interest and do not confer ownership rights, unlike equity, retained earnings, and reserves which all constitute owners' funds or shareholders' equity -> correct

2025: 3 June Shift 2

"The company is willing to go for a public issue of shares and debentures to be made under SEBI guidelines". Identify the factor affecting capital structure highlighted in the aforesaid statement.

2026: 13 May Shift 1

Identify the ratio with which the following formula is associated:

$\frac{Profit\ after\ tax + Depreciation + Interest + Non\text{-}cash\ exp.}{Pref.\ Div + Interest + Repayment\ obligation}$

2026: 13 May Shift 1

"It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in the smooth functioning of an organisation".Identify the financial concept discussed in the statement:

2025: 16 May Shift 1

Match List-I with List-II

List-I	List-II
(A) EBIT-EPS	(I) Credit availed
(B) Fixed capital decision	(II) Financial leverage
(C) Working capital Decision	(III) Capital Structure
(D) Cost of equity and debt	(IV) Financing alternatives

Choose the correct answer from the options given below:

2025: 22 May Shift 2

"Learning how to manage debt is what can put you ahead". Identify the concept highlighted in the aforesaid statement.

2025: 14 May Shift 2

Money required for carrying out the business activities is known as:

Which of the following cannot be termed as owners' funds?

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)