Interest on debt is tax-deductible to the issuing corporation,whereas dividends on stock are not.

Name: Interest on debt is tax-deductible to the issuing corporation,whereas dividends on stock are not.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Interest on debt is considered a cost of doing business and is tax-deductible to the issuing corporation. On the other hand, dividends on stock are not tax-deductible, as they are considered a distribution of profits to shareholders.

Interest on Debt Is Tax-Deductible to the Issuing Corporation,whereas Dividends