Debenture holders and Creditors

What is the difference between debenture holders and creditors?

Showing Answers 1 - 4 of 4 Answers

kokila garg

  • Aug 11th, 2006
 

Debentureholder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

shruthibalijepalli

  • Sep 29th, 2006
 

debenture holders come under the liabilities side of the balance sheet, and they come into picture at the time of raising loans through debentures for the starting up of the company or at the time of expansion.

where as the creditors are related with the goods. or merchandise. though they also come under the liabilities side of the balance sheet, they come under the current liabilities.

saijothi

  • Mar 7th, 2007
 

Debenture holder gets the first preference for the payment when winding up of the company


Creditors are those on whom company is having liablity for the payment towards services rendered

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Amit bharat

  • Apr 17th, 2007
 

The debenture holder provides finance to company. The company pay the interest to debenturem holder. Creditors are the group of persons who provides trading goods as well as raw material to the company on credit.

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