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A debtor or debitor is a legal entity (legal person) that owes a debt to another entity. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor. When the counterpart of this debt arrangement is a bank, the debtor is more often referred to as a borrower.
Debt is an obligation that requires one party, the debtor, ... In financial accounting, debt is a type of financial transaction, as distinct from equity.
Receivable turnover ratio or debtor's turnover ratio is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.
The accounting equation relates assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity. The accounting equation is the mathematical structure of the balance sheet. Probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board (IASB). The following is a ...
To determine whether to debit or credit a specific account, we use either the accounting equation approach (based on five accounting rules), [13] or the classical approach (based on three rules). [14] Whether a debit increases or decreases an account's net balance depends on what kind of account it is. The basic principle is that the account ...
A charge-off is a debt that has gone unpaid for a sufficient amount of time and is deemed uncollectible by the creditor. ... The write-off is purely an accounting function that applies only to the ...
In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities .