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प्रश्न
Justify the following statement.
Interest is a liability/obligation of the company.
उत्तर
Interest is the cost of renting money, for the borrower and it is the income from lending money to the lender.
Features of interest are:
- Interest is the price paid for the productive services rendered by capital.
- It is directly related to risk. The higher the risk, the higher the interest.
- The rate of Interest is expressed as an annual percentage of the Principal.
- The rate of interest is determined by various factors like money supply, fiscal policy, the volume of borrowings, the rate of inflation, etc.
- Interest is a charge against the profit of the company. Even if the company makes no profit, interest should be paid.
- It is payable at a fixed and generally pre-determined rate.
The company has to pay interest if it has borrowed money from creditors like Debentures holders, Depositors, Bondholders, etc. Thus, interest is a liability/obligation of the company.
संबंधित प्रश्न
______ is a return paid to creditors by the company.
Write a word or a term or a phrase which can substitute the following statement.
The return paid to the creditors by the company.
State whether the following statement is true or false.
Interest is a liability for company.
Find the odd one.
Complete the sentence.
The obligatory payment made by company to its creditors is called as ______.
Select the suitable option for the following.
Interest ____________.
Answer in one sentence.
What is Interest?
Correct the underlined word and rewrite the following sentence.
Interest is paid to shareholders.
Correct the underlined word and rewrite the following sentence:
Dividend is an obligation to be paid by a company every year.
Explain the following term/concept.
Interest
Distinguish between the following:
Dividend and Interest
Explain the features of Interest.
The reward given for the use of capital
