Debentures are:
A) debt secured by a general claim against total assets
B) short- term liabilities arising from income transactions
C) debt secured by a claim against specific assets
D) unearned revenues

Question

Quizplus · Accepted Answer

Debentures are a type of debt instrument that is not secured by physical assets or collateral. Instead, they are backed by the general creditworthiness and reputation of the issuer, which means they have a general claim against the total assets of the issuer.

Debentures Are