Monday 6 May 2013

What are differences between creditors, debtors, crediting and debiting?

Debtors versus creditors 

Creditor is a buyer of a bond or a note, or in other words, a lender or an investor.

Creditors are governments, mutual funds, pension funds, and financial institutions from around the world. Talking about corporations, it is important to note that creditors are not shareholders: that is, creditors are not the owners of a corporation; thus, creditor claims are classified as a liability, not equity, on the debtor's balance sheet.


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