Web(j) Debenture interest is payable after the payment of preference dividend but before the payment of equity dividend. (k) Fixed Assets Turnover ratio indicates the firm窶冱 ability of generating sales per rupee of long term investment. Theoretical Framework 2. (a) Distinguish between Money measurement concept and matching concept. WebInterest on debentures represents a percentage paid to the lender for their finance. Usually, it is a fixed rate set when the contract between two parties begins. The borrower receives …
MCQ Questions on Debentures - NCERT Books
WebMar 7, 2024 · The tax rate applicable is 50%. Therefore, the financial break-even is $60,000 (Dividend 30,000 + Tax 30,000). Plan IV: In the case of Plan IV, the fixed financial charges are $75,000, i.e., interest on debentures $15,000 + preference dividend ($30,000 + Tax on profit $30,000) $60,000. Verification 3. Webdebenture interest noun [ U ] uk us FINANCE an amount of money paid regularly to the lenders on debentures: Debenture interest has to be paid by a company whether it makes … datav地图怎么用
Debenture interest . Fundamentals of Accounting and Auditing
WebInterest paid on debenture is a liability and it is fixed in nature. In case of dividends it is not fixed in nature to pay. Dividends are appropriation of profits earn by the company on the other hand debenture is a long term liability of a company and its interest is expense not appropriation of profits. Was this answer helpful? 0 0 WebA debenture is evidenced by a formal document issued by the company which acknowledges its indebtedness, and will generally set out the terms of the loan, for example, rates of interest, dates the interest is payable (usually every six months), repayment of capital, etc. Debentures may be issued by two methods: public offer WebJun 11, 2024 · The interest on debentures is a charge to the profit of the company. According to the Income Tax Act, 1961, the company should deduct income tax at the … maserati 4 sitzer