When it comes to creditors and
debtors, which of the following
occurs?

A. Creditors and debtors receive loans from
consumers as capital.
B. Every debtor is guaranteed a loan.
C. Debtors receive loans as capital from creditors.
D. All creditors have the same interest rates for
debtors.

Respuesta :

The only true given statement about debtors and creditors is; C. Debtors receive loans as capital from creditors.

How to identify creditors and debtors?

Debtors are defined as the party from whom we have to receive the payment in the form of cash or any negotiable instrument.This means an asset for the firm.

Meanwhile, the creditors are defined as the party to which we will pay in the future agreed date in the form of cash or any negotiable instrument. This means liability for a firm.

A) This is not true because creditors don't receive  loans from consumers as capital. This is the role of debtors.

B) This is not correct because it is not true that every debtor is guaranteed a loan.

C) This is true as defined earlier on the role of debtors and creditors.

D) This is not true because different creditors have different lending rates as the case may be.

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