Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Companies: Debentures › Debenture interest differs from equity dividend …
Debenture interest differs from equity dividend because its rate is what?
AFixed in advance by terms
BVaried with yearly profits
CVoted yearly by owners
DLinked to the share price
Answer & Solution
Correct answer: A. Fixed in advance by terms
The interest rate is prefixed when debentures are issued, while dividend on shares varies with profits.
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