Which of the Following Describes a Term Debenture

question 20

Multiple Choice

Which of the following describes a term debenture?

• A)A debenture that gives the debenture holder a claim for specific assets if the issuer fails to pay
• B)A debenture that repays principal in instalments
• C)A debenture that matures at one specified time
• D)A debenture that is not backed by specific assets

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Definitions:

Partial Balance Sheet

A financial statement that shows a portion of a company’s assets, liabilities, and equity at a specific point in time, rather than the complete picture.

Current Assets

Assets that are expected to be converted into cash within one year or within the operating cycle of the business, whichever is longer.

Assets Due

Assets or receivables that are scheduled to be received or settled at a future date.

Maturity Value

The amount that will be payable to the holder of a financial instrument at its maturity date, including principal and interest.