Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Return on debentures is called:
Options:
Interest
Dividend
Redemption
None of these
Correct Answer:
Interest
Explanation:
The return on shares is known as dividend while the return on debentures is called interest. The rate of return on shares may vary from year to year depending upon the profits of the company but the rate of interest on debentures is prefixed.