GCEFinancial AccountingCompany Accounts2024

In a company's statement of financial position, debentures are classified under which section?

ACurrent liabilities
BCurrent assets
CNon-current liabilitiesCORRECT
DEquity and reserves
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Why the answer is C, and why the others tempt you.
Debentures are long-term loan instruments issued by a company and are therefore classified as non-current (long-term) liabilities in the statement of financial position. They are not equity because debenture holders are creditors, not owners. Current liabilities are obligations due within one year.
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