Question 47
Company AccountsA document which acknowledges that a company owes a named person a stated sum of money with the promise that a stated interest rate will be paid periodically is called
- A.share certificate
- B.preference certificate
- C.debenture certificate
- D.allotment certificate
- E.call certificate.
Show the answer and explanation
Answer: C (debenture certificate)
Explanation
A debenture is a written acknowledgement of a loan to the company carrying a fixed rate of interest.