Meaning and Explanation of Debt

Debt is the finance term and it is very important in business . Because , every businessman needs money but his own sources of money are limited . So , for fulfilling the money in business for purchasing plants and machinery and other equipments , it is very necessary for businessman for getting Debt.

Simple definition of Debt

Debt is the liability of business . It is shown in the liability side of business . It includes loan , outstanding expenses and advance incomes . But basically , taking money or borrowing money on credit creates Debt . The persons who provides debt are creditors or money lenders . They gets interest on his given debt .

Explanation of Debt

After developing the technique of Trading on Equity , large Corporate are taking more and more debt and take benefit of difference between dividend rate and interest rate . Debt may be secured and unsecured . If any person gives debt on the basis on some security , then , it is called secured debt . In case of secured debt , creditors has power to sell the asset which is under security , if borrower does not pay his debt . Unsecured debt is that type of debt which is given without any security and if borrower becomes bankrupt , creditor can not get his amount by selling security . So , it is more risky than secured debt. So , creditor charges high rate on this type of debt .
We can also divide debt into consumer and productive category . If any body takes loan for consumption or purchasing any consumable product . Then this debt is called consumer debt . Credit card debt in USA is most famous type of consumer debt . College boys , small salaried person takes these debt in the form of personal loan .
( visionvictory has given many Options for people who are in credit card debt . see Video here )
Productive debt is the debt which is taken for fulfilling production projects . Enterprises takes this debt for buying business plant and machinery which will be benefited for increasing production .


Comments on this Website

Share above Content to Your Friends

Meet Your Teacher

Vinod Kumar Prof. Vinod Kumar has received the post graduate degree in Commerce from ... read more »


access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Meaning and Explanation of Debt
Meaning and Explanation of Debt
Accounting Education
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock