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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Creditors vs. Debenture holder
What is a difference between creditors and debenture holders?
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
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Thank you, it is more than enough.
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