A document which acknowledge that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is

Assessment: WAEC SSCE - Financial Accounting - 2009 (Objective) Subject: Financial Accounting

Question 1 Report

A document which acknowledge that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is
Answer Details
A debenture certificate is a document that acknowledges that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically. It is a type of long-term debt instrument that companies issue to raise funds from the public. When an individual buys a debenture, they are essentially lending money to the company. The company is obligated to pay interest on the debenture at a predetermined rate and return the principal amount at the end of the maturity period. A debenture certificate serves as proof of the company's debt to the holder of the certificate.
Read lesson note on Nature And Significance Of Accounting (JAMB)
View Answer

Related Questions

1

Which of the following is not part of the cost of production
2

Rent is apportioned each department on the basis of
3

In the absence of an agreement, partners share profits
4

Use the following information to answer the given question \(\begin{array}{c|c} & D\\ \hline \text{Purchase of raw materials} & 236,500\\ \text{Returns of ra...
5

As a basis for assessing future usage, fixed assets are shown at
6

Subscription prepared by members is recorded in the balance sheet of a club as a
7

Which of the following books of original entry is used to record all payments and receipt by cash or cheque?
8

The reduction in value of an intangible asset is

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning