Question

Select the most appropriate alternatives from those given below

Interest on Investment is ________ of business concern.
a) a profit
b) a loss
c) an expenses
d) an income

Answer 1

Interest on investment is an income of business concern.

Explanation:
The interest on investment is an income of a business concern. It is the income received on the amount invested outside the business. Thus, it is treated as the other income of the business and is shown on the credit side of the Profit & Loss A/c.