When Comparing Debentures and Unsecured Notes,it Can Be Said That

question 21

Multiple Choice

When comparing debentures and unsecured notes,it can be said that:

• A)they are identical securities.
• B)a debenture holder is an unsecured creditor whereas an unsecured note holder is a secured creditor.
• C)both are an example of unsecured debt.
• D)a debenture holder is a secured creditor whereas an unsecured note holder is an unsecured creditor.

---

Definitions:

Annual Leave

Paid time off work granted by employers to employees to be used for personal activities.

Maternity Leave

A period of paid or unpaid leave granted to a mother before and after giving birth to care for the newborn.

Provision

A liability of uncertain timing or amount, recognized in the accounting records for future liabilities or losses.