Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
On which value Interest on debentures is paid by a company?
Options:
Issue price
Book value
Face value
Cost price
Correct Answer:
Face value
Explanation:
The face value of debentures is the nominal value or principal amount that each debenture represents. It serves as the basis for calculating interest payments and is the amount debenture holders expect to receive when the debenture reaches its maturity date.