Creditors Definition in terms of Accounting - QS Study
QS Study

Creditors

A person who gives a advantage without receiving cash or money’s worth instantly but to assert in future, is a creditor. A creditor is an individual, bank, or other venture that has lent cash or extended credit to another party. The creditors are exposed as a liability in the balance sheet.

A creditor is a supplier: a person, organization or other entity that sells a product or service as their company. This in concentrate means that all retailers are creditors, as they sell products or services. Example: Mr. A has bought goods from Mr. B of Rs. 1,00,000 on credit. Mr. B is the creditor of Mr. A.

Some creditors are identified as secured creditors as they have a lien or other lawful assert to the company’s (debtor’s) assets. Other creditors are regularly unsecured creditors since they do not have a lien or legal right to definite assets of the company.

The majority balance sheets report the amounts owed to creditors in two groupings: current liabilities and non-current (or long-term) liabilities.