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Why creditors is an liability?

Anonymous

∙ 8y ago

Updated: 10/16/2024

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Q: Why creditors is an liability?

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Continue Learning about Accounting

Is Creditors an asset or liability?

Current Liability

What is creditors for good assets or liability?

Liability

Are creditors considered as current liability?

Yes, it is a current liability.

Is creditors a asset or liability?

creditor is a liabiliity

A credit to a liability account?

indicates an increase in the amount owed to creditors.

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Related Questions

Is Creditors an asset or liability?

Current Liability

What is creditors for good assets or liability?

Liability

Are creditors considered as current liability?

Yes, it is a current liability.

What is the amount owed to creditors called?

liability

Is creditors a asset or liability?

creditor is a liabiliity

Transaction that will decrese an asset anf decrease a liability?

Payment to the creditors Creditors Decrease Bank balance decrease

Why creditors are laibility?

Any money you owe to someone else is a liability to you and an asset for them. You have to pay (liability) and they get to receive (asset).

A credit to a liability account?

indicates an increase in the amount owed to creditors.

Why is net profit treated as a liability?

Net profit for a business is liability because it must be paid to equity holder and creditors.

What is a liability account?

Liability Accounts record obligations of a business towards its creditors. Examples of liability accounts are Accounts Payable, Interest Payable, Wages Payable. These accounts appear on the balance sheet.

Describe the stockholders liability to creditors of a corporation?

A corporation's creditors usually do not be past the assets of the corporation to satisfy their claims. The most a stockholder can lose financially is the amount he or she invested.

How to treat Creditor in a balance sheet?

Creditors are the people which gives products on credit to business for payment in future, as it is liability of business so it is shown under current liability at liability side of balance sheet .

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