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Creditors play essential roles in the financial ecosystem by providing capital to borrowers, such as individuals or businesses, enabling them to fund operations, make investments, or cover expenses. They assess the creditworthiness of borrowers to determine the terms of lending, including interest rates and repayment schedules. Additionally, creditors have the right to collect debts and may take legal action to recover funds if borrowers default on their obligations. Their actions and decisions significantly impact both the credit market and the economy as a whole.

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Related Questions

Examples of creditors ledger and a creditors journal?

creditors journal


What is creditors circularization?

creditors' circulization


Can creditors account have debit balance?

creditors have debit balances as advances receive from creditors..........


What does a creditors clerk do?

duties of a creditors clerk


Why a business need creditors?

Why a business have creditors


How can we calculate creditors payment period?

Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2) Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2)


How do you get your creditors list?

You can get a list of your creditors by checking your credit report. Most of all creditors will report to the agencies and will have a record.


How can pass sundry creditors journal entry?

Purchases A/c -Dr 5000 To Sundry Creditors 5000


Who is called sundry creditors?

When company purchases materials from different vendors on credit, those combined creditors are called sundry creditors.


What meant by sundry creditors?

When amount from more than one small creditors are join and shown together it is called sundry creditors.


Agency conflict between shareholders and creditors?

if the creditors are not paid in time.


What creditors must be notified after a death?

All creditors must be notified.