A particular source of finance has the following characteristics: fixed payments, a fixed repayment date, it is secured on the assets of the company and the payments are classified as an expense.
Which of the following best describes this source of finance?
A. A redeemable preference share
B. An irredeemable preference share
C. A loan note
D. An overdraft
the answer is C.
but my question is why not it A (A redeemable preference share )
Ask the Tutor ACCA FA
Company account
4y ago#1The interest on loan notes is an expense.
The dividends payable of redeemable preference shares are recorded as being dividends.
Sign into reply to this topic.