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    Question

    Which person owes an amount to a business organisation

    for buying goods and services on a credit basis?
    A Creditors Correct Answer Incorrect Answer
    B Debtors Correct Answer Incorrect Answer
    C Owner Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer

    Solution

    The person who owes an amount to a business organization for buying goods and services on a credit basis is called a debtor . A debtor is a person or entity that owes money to another person or entity. In the context of business, a debtor is a customer who has purchased goods or services from a business on credit and has not yet paid for them.

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