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Creditors vs. Debenture holder

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Creditors vs. Debenture holder

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • November 1, 2015 at 11:29 am #279903
    Marko
    Member
    • Topics: 8
    • Replies: 5
    • ☆

    What is a difference between creditors and debenture holders?

    November 1, 2015 at 11:52 am #279910
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23352
    • ☆☆☆☆☆

    Debenture holders are a type of creditor (all elephants are animals but not all animals are elephants) but a creditor is not necessarily a debenture holder.

    A debenture, by definition, is “the written acknowledgement of a debt by a company, usually under seal” whereas a creditor, particularly trade creditors, is someone that has advanced to the company goods or services for which they have not yet been paid

    Is that enough for you?

    November 1, 2015 at 12:03 pm #279915
    Marko
    Member
    • Topics: 8
    • Replies: 5
    • ☆

    Thank you, it is more than enough.

    November 1, 2015 at 1:22 pm #279928
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23352
    • ☆☆☆☆☆

    You’re welcome

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