Saved Bookmarks
| 1. |
What are creditors |
|
Answer» creditor is a party that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property and services. \tPersons or organisations to whom the firm is liable to pay money are called creditors.\tThey have credit balance to the firm.\tPayments are made to them.\tThey are shown as liabilities in the Balance Sheet under Current Liabilities. |
|