What is the term for an individual or entity that purchases goods on credit?

Multiple choice question for Accounting Mcqs. Select an option, then review the explanation below.

Explanation

When goods are sold on credit, the buyer becomes a debtor because they owe payment to the seller. The seller is the creditor, as they have extended credit to the buyer.

Practice related questions from the same subject.

1.What is the accounting method called that systematically allocates the unexpired cost of fixed assets as expenses over multiple accounting periods?
2.What is the term used for any written document that serves as proof of a business transaction?
3.What term is used for the price reduction granted on faulty or damaged goods?
4.What is the term for the money invested by the owner to initiate a business?
5.What term is used to describe a decrease in the original price of an item?

What is the term for an individual or entity that purchases goods on credit?

Explanation

More Accounting Mcqs