Which term describes private or commercial customers who have purchased goods or services on credit and owe money to the business?

• A. Expenses
• B. Debtors
• C. Assets
• D. Liabilities

Answer: (B)

When customers buy on credit, the business has a right to receive payment from them. Those customers are debtors. They are an asset because the money they owe will likely be collected, often recorded as accounts receivable on the balance sheet. This contrasts with expenses (costs incurred), assets (resources owned), and liabilities (amounts the business owes to others). Debtors specifically describe money owed to the business by customers, fulfilling the scenario in the question.