From the Point of View of a Business Entity, a Person

question 54

Multiple Choice

From the point of view of a business entity, a person or business from which a debt is owing is known as a:

• A) debtor.
• B) creditor.
• C) debitor.
• D) bank.

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Definitions:

Income Statement

A financial statement that reports a company's revenues, expenses, and net income over a specific period.

Statement Of Stockholder's Equity

A financial report that shows changes in the value of a company's equity over a reporting period, stemming from transactions with shareholders.

Balance Sheet

An account that consolidates the assets, liabilities, and shareholders' equity of a company, reflecting its financial status at a specific time.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, used to prepare financial statements.