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Question : Interest on debentures is considered as-

Option 1: Income

Option 2: Expense

Option 3: Liability

Option 4: None of the above


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Expense


Solution : Interest on Debentures is considered as an expense. It is a charge against the profit of the company and is payable whether the company earns profit or not

Hence, the correct answer is option 2.

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