Question

Debitor are the ____ of business. 1)labilities 2)expences
3)assets
4)ownersship
5)equity

Answer 1

ANSWER :

Debtors are the ____ of business.

1) Liabilities

2) Expences

3) Assets ✓

4) Ownersship

5) Equity

❖ Debtors are the assets of business.

• The term 'Debtors' represents those persons or firm to whom goods have been sold or services rendered on credit and the payment has not been received from them. In other words, debtors are the persons or firms from whom the payment is to be received by the business for the goods sold or services rendered on credit.

• Debtors are the assets of a business. Debtors are considered as liquid assets. Liquid assets are those current assets which can be converted into cash within a short period.

• Debtors are also called Sundry Debtors. In the final accounts of a business prepared for a particular accounting year, debtors or sundry debtors are appear in the Assets side of the Balance Sheet.