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WAEC Financial Accounting 1999 Question 39

Question 39

Company Accounts

A bond acknowledging a loan to a company under the company's seal, bearing a fixed rate of interest is known as

  1. A.certificate
  2. B.agreement
  3. C.bank loan
  4. D.debenture.
Show the answer and explanation

Answer: D (debenture.)

Explanation

A debenture is a sealed document acknowledging a loan at a fixed rate of interest.