Interest Payable on Debentures Is?
An Interest Paid Is an Award to All the Debenture Holders for Investing in the Debentures of an Enterprise. Usually, Interest Is Paid in a Periodical...
An interest paid is an award to all the debenture holders for investing in the debentures of an enterprise. Usually, interest is paid in a periodical systematic manner at a fixed rate of interest on the face value of the debentures and is being treated as a charge on the profits.
What is debenture payable?
Explanation : A fixed rate of Interest is payable on debentures. Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest.
Is interest on debentures a direct expense?
No, the interest on debentures is not added to the operating activity in the cash flow.
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