The person to whom goods are sold on credit is called___________?
Correct answer: C. Debtor
- A. Buyer
- B. Seller
- C. Debtor
- D. Creditor
Explanation
A person who buys goods on credit owes payment to the business, so that person is recorded as a debtor. A creditor is the party to whom the business itself owes money.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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