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Question
Explain the following term/concept.
Interest
Solution
Interest is the price paid for the productive services rendered by capital. It 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.
RELATED QUESTIONS
______ 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.
Select the suitable option for the following.
Interest ____________.
Select the suitable option for the following.
____________ Final Dividend.
Select the suitable option for the following.
Deposit Holders ____________.
Answer in one sentence.
What is Interest?
Correct the underlined word and rewrite the following sentence:
Dividend is an obligation to be paid by a company every year.
Distinguish between the following:
Dividend and Interest
Explain the features of Interest.
Justify the following statement.
Interest is a liability/obligation of the company.
Answer the following question.
What is Interest? Explain its features.
The reward given for the use of capital
What do you mean by interest?
