About debt:
First, the connotation:
1, from the accounting point of view
Liabilities refer to the current obligations of units or individuals that are formed by past transactions and events and are assumed by units or individuals, which are expected to lead to the outflow of economic benefits from accounting, including various loans, payables and accounts received in advance. Sometimes it also refers to debts owed; Try to pay off all debts.
2. From an economic point of view
Funds that must be returned. In addition to the borrowed funds, if bonds are issued, the principal and interest (principal+interest) must be returned, which is also called debt. Failure to repay debts is called non-performance of debts. In addition, the rise of debt-owned capital is called debt exceeding.
3, debt,' creditor's rights' symmetry. Refers to the obligation of the debtor to the creditor to act or not to act according to law in the legal relationship of debt. For example, in the sales contract, the seller has the obligation to deliver the goods sold to the buyer, which is a debt to a certain behavior. For example, in the publishing contract, the author has the obligation not to deliver the manuscript to a third party for publication, which is a debt of omission.
Second, debt instruments:
1. Common forms of debt are financial instruments, such as bonds, long-term bills and short-term bills. Creditors can be individuals, banks or institutions such as pension funds and insurance companies. They borrow money because they believe that the debtor will bear the obligation to repay the principal and interest.
2. Debt instruments have a clear term and maturity date, and usually pay interest at a fixed interest rate. Buyers of debt instruments have funds that don't need to be used immediately and want to earn interest before they use them. Interest is a reward for creditors not to use these funds for a certain period of time.