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Debtor

BBrian4y ago
Sir when we tell Investment in debtors Does investment in debtors means Like can fund our debtors balance through obtaining a bank overdraft
John MoffatJohn MoffatTutor4y ago#1
The investment in debtors refers to the level of debtors. If everything was sold for cash then there would be no debtors at all. The more credit is given then the higher the figure for debtors will be and therefore the more money is being invested in financing the level of the debtors.
BBrian4y ago#2
Yes sir So when more cash is being invested in financing the debtors balance , One way to finance is to burrow money from the bank right sir
John MoffatJohn MoffatTutor4y ago#3
Right :-)
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