Asked by: Kostadin Wichkowskasked in category: General Last Updated: 13th June, 2020
What is creditor account?
In this manner, what is an example of a creditor?
The definition of a creditor is a person to whom money is owed or someone who provides credit. An example of a creditor is a credit card company. YourDictionary definition and usage example.
Likewise, what is a debtor and creditor in accounts? A creditor is an entity or person that lends money or extends credit to another party. A debtor is an entity or person that owes money to another party.
Beside this, what is the meaning of creditors in accounting?
Definition: Creditor is an accounting expression to indicate a party that has delivered a product, service or loan, and is owed money by one or more debtors. Creditors are entities, companies or people of a legal nature who have provided goods or services, or loaned money to a debtor.
What is a debtor in accounts?
A debtor is an person, company or organization who owes money. In legal terms, anyone who voluntarily declares bankruptcy is also known as a debtor. Debtors owe money to creditors, and therefore it it similar to the customer-supplier relationship. In very general terms, a debtor is anyone who owes money to a creditor.