A creditor in accounting terms is:
AA person who owes the business money
BA person to whom the business owes moneyCORRECT
CA bank's borrower
DA shareholder
CIBNFinancial Accounting
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Creditors are persons to whom the business owes money — typically trade payables and accrued amounts.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Financial Accounting questions
CIBN Financial Accounting has thousands more questions like this — with Worked answers on every one.