Creditors
Creditors are parties to whom the business owes money. Trade creditors, usually called trade payables, arise from goods or services bought on credit. Other creditors may include lenders, tax authorities or employees. The obligation is a liability in the debtor business’s accounts and should be classified according to its nature and settlement timing.
Worked example
Goods bought on credit for $2,500 create a $2,500 trade payable to the supplier until payment or another agreed settlement.
Common mistake
A creditor is not necessarily a supplier, and a supplier balance is not necessarily a loan. Use the specific liability label where possible.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | FA | Supporting | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FFA | Supporting | September 2026–June 2027 |