Question 8
Company AccountsA document which acknowledges that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is
- A.share certificate
- B.allotment certificate
- C.preference certificate
- D.debenture certificate
Show the answer and explanation
Answer: D (debenture certificate)
Explanation
A debenture is a written acknowledgement of a loan to the company carrying a fixed rate of interest.