Answer:

A creditor or lender is a party that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property and service.

Verified answer

1. A creditor is an entity that extends credit, giving another entity permission to borrow money to be repaid in the future. · A business that provides supplies

2. A debit is a record of the money taken from your bank account, for example when you write a cheque. The total of debits must balance the total of credits.

3. An entity is a grouping of things with rules or data in common. An entity often represents a group of people (eg children, applicants, stakeholders)

4. A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets in return for money.

5. An expenditure represents a payment with either cash or credit to purchase goods or services. An expenditure is recorded at a single point in time