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WAEC Financial Accounting 2016 Question 46

Question 46

Company Accounts

A loan to a company under the company's seal is

  1. A.fixed deposit.
  2. B.mortgage.
  3. C.bond.
  4. D.debenture.
Show the answer and explanation

Answer: D (debenture.)

Explanation

A debenture is a written acknowledgement of a loan made to a company under its seal.