English

Interest is payable to Debenture holder every year irrespective of whether there are profits or not.

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Question

Interest is payable to Debenture holder every year irrespective of whether there are profits or not.

Options

  • True

  • False

MCQ
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Solution

True

Explanation:

Debenture holders are creditors entitled to fixed interest payable at stated intervals as a matter of right; the company must pay this contractual interest irrespective of profits (except for zero‑interest debentures or in insolvency).

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Chapter 10: Sources of Finance - EXERCISES [Page 182]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 10 Sources of Finance
EXERCISES | Q 41. | Page 182
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