Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
What is the specific term for a person or entity that acquires goods or services on credit?
Answer:
Debtor
A debtor is an individual or entity that owes money to a business for goods or services purchased on credit. Because the payment is deferred, the business records this as an account receivable. The debtor is obligated to pay the amount due at a future date, making them a significant component of a company's current assets and credit management process.