which of the following statement is true of a debenture?
Answer Details
The statement that is true of a debenture is: "Its holders receive interest."
A debenture is a type of loan that a company takes out from investors. The investors lend the company money and, in return, receive interest payments on the loan. This interest is usually paid at a fixed rate, and the loan is usually repaid after a set period of time.
Debentures are not part of a company's equity, meaning that the owners of debentures are not co-owners of the company and do not have control over the company.
In summary, the statement that is true of a debenture is that its holders receive interest. Debenture holders are not co-owners of the company and do not have control over it.