BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debtors
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Creditors
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Owners
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Investors
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Detailed explanation-1: -Solution(By Examveda Team) The person from whom the goods are purchased on credit are called Creditors. The person, firm or an organization from whom goods or services are purchased on credit by the business are called creditors of the business.
Detailed explanation-2: -When goods are purchased on credit bases then that person is known as creditor.
Detailed explanation-3: -The person delivering the goods is called the ‘bailor’. The person to whom they are delivered is called the ‘bailee’.
Detailed explanation-4: -When goods are purchased on credit, stock increases which is an asset and creditors increase, which is a liability.
Detailed explanation-5: -A creditor could be a bank, supplier or person that has provided money, goods, or services to a company and expects to be paid at a later date.