In terms of accounting treatment debentures and bonds are the same thing.

Question

Quizplus · Accepted Answer

Both debentures and bonds are long-term debt instruments issued by companies to raise funds from the market. They have many similarities in terms of accounting treatment, such as being recorded as a liability on the balance sheet, and interest payments being recorded as expenses in the income statement. Therefore, in terms of accounting treatment, debentures and bonds are considered to be the same thing.

In Terms of Accounting Treatment Debentures and Bonds Are the Same