Which of the Following Is a Characteristic of Debentures

question 52

Multiple Choice

Which of the following is a characteristic of debentures?

• A)debentures are issued to raise debt funding
• B)debentures are secured by a fixed or floating charge over the issuing entity's assets
• C)debentures may be issued to the public via a prospectus
• D)all of the options are characteristics of debentures

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Definitions:

Record Depreciation Expense

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Allocate Prepaid Insurance

involves distributing the cost of insurance premiums over the period that the insurance coverage relates to, recognizing it as an expense over time rather than all at once.

Accrue Salaries Payable

Accrue Salaries Payable involves recording the salaries earned by employees that have not yet been paid, recognizing the liability before the cash is disbursed.