Multiple choice

When interest on capital is treated as a charge against profit, it will be given in which of the following conditions?

  1. Whether there is a profit or loss

  2. When there is profit only

  3. In Capital Ratio

  4. Equally

  5. To the extent of profit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Charge means interest will be paid whether there is profit or loss.

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