Define: Debt Instrument

UK Accounting Glossary

Definition: Debt Instrument



Advertisement



Full Definition of Debt Instrument


A debt instrument is a contractural or written assurance to repay a debt.

A debt instrument can be a promissory note, a bill of exchange, a bond or other such instrument. A debt instrument may also be referred to as an instrument of indebtedness. In most cases, a debt instrument can be sold, traded, or otherwise used as a form of currency or barter, with the debt owed to the debt instrument’s current holder. A debt instrument backed by a government agency – such as a U.S. Treasury Bond – or a highly-rated corporate bond with a fixed dollar payment may be defined as an asset. Defaulting on a debt instrument may result in the loss of the pledged collateral, or in a reduction of the credit rating of the entity which issued the debt instrument.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/debt-instrument/
Modern Language Association (MLA):
Debt Instrument. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 25, 2020 https://payrollheaven.com/define/debt-instrument/.
Chicago Manual of Style (CMS):
Debt Instrument. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/debt-instrument/ (accessed: February 25, 2020).
American Psychological Association (APA):
Debt Instrument. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/debt-instrument/

Definition Sources


Definitions for Debt Instrument are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February 2020.