CUET Preparation Today
| Interest payable on debentures is called? |
An appropriation of profits of the company A charge against profits of the company Charge on Capital Reserve A charge on Reserves and Suplus |
| A charge against profits of the company |
| Interest payable on debentures is indeed considered a charge against the profits of the company. When a company issues debentures, it incurs a financial obligation to pay interest to the debenture holders at a predetermined rate. This interest expense is considered a cost of borrowing for the company and is deducted from the company's profits when calculating its net income. |
