29.Explain the following terms?
(a)Debtors (b) working capital (c) creditors
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debtor
a person who owes money
Working capital
the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
creditors
a person or company from whom you have borrowed money
......hope it helps.....
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Answer:
A) DEBTORS :- A debtor is an individual or company who owes money .
That means we have to receive money from him.
He is in debt to a company or person
B) Working captital :- This is the money which is used in day to day operations .
Company can pay off its short term liabilities.
C) Creditor :- Creditor is an individual or company to whom we owe money to.
That means we need to pay him money
We took debt from him ...He Gave us money
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