Determination Debtors And Creditors - SS1 Accounting Past Questions and Answers - page 1
What are debtors also known as?
Accounts payable
Accounts receivable
Creditors
Stockholders
What are creditors also known as?
Accounts payable
Accounts receivable
Creditors
Stockholders
How does a business determine who its debtors are?
By keeping track of unpaid invoices and customer accounts
By keeping track of unpaid bills and supplier accounts
tracking employee salaries
By monitoring office expenses
How does a business determine who its creditors are?
By keeping track of unpaid invoices and customer accounts
By keeping track of unpaid bills and supplier accounts
By tracking employee salaries
By monitoring office expenses
Why is it important for a business to keep track of its debtors and creditors?
To ensure a healthy cash flow
To increase employee salaries
To purchase more office supplies
To decrease office expenses
What is the difference between debtors and creditors?
Debtors are people or companies who owe money to a business, while creditors are people or companies that a business owes money to.
How can a business manage its cash flow effectively by monitoring its debtors and creditors?
A business manages its cash flow effectively by monitoring its debtors and creditors by regularly reviewing their accounts receivable and accounts payable reports, making it easier to follow up on overdue payments and manage their cash flow effectively.