A liability where the borrowings are from many investors, representing a written promise to pay a principal amount at a specific time, as well as interest on the principal at a specific rate per period, is known as:

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Quizplus · Accepted Answer

A debenture is a type of bond that represents a long-term debt issued by a company or government entity. The borrowings are from many investors, and there is a written promise to pay a principal amount at a specific time, as well as interest on the principal at a specific rate per period. A lease is not the correct answer as it typically involves renting an asset or property, not borrowing money. Defeasance refers to the process of setting aside funds to pay off a bond or other debt obligation, but it is not the name of a liability. Collateral refers to an asset pledged as security for a loan, but it is not the name of a liability either.

A Liability Where the Borrowings Are from Many Investors, Representing