Which of the following is false :

CS Executive · Corporate and Management Accounting · PYQS · December 2021

(A) Rate of interest on debenture is fixed

(B) Equity shareholders are owners and debentureholders are lenders

(C) At the time of liquidation debenture-holders get their payment before equity shareholders

(D) Interest on debentures is an appropriation of profit

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Corporate Accounting