Which of the following is a written acknowledgement of a loan to a company?
- debt
- retained profit
- reserve
-
debenture
The correct answer is: D
Explanation
A debenture is a written acknowledgement of a loan that a company has taken. It represents a long-term debt instrument issued by a company or a government entity to raise funds. Debentures are typically issued to investors or lenders who provide funds to the company in exchange for interest payments and eventual repayment of the principal amount.
Debentures are usually secured by the assets of the company, and they outline the terms and conditions of the loan, including the interest rate, repayment schedule, and any other specific provisions.