Credit Transactions: Debtors & the National Credit Act
Credit Transactions: Debtors & the National Credit Act is one of 8 topics in the Grade 9 Economic and Management Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What is a debtor?
A customer who owes the business money after buying goods on credit
A business that owes money to a supplier
A bank that lends money to businesses
A type of cash transaction
Answer: A customer who owes the business money after buying goods on credit — A debtor is a customer who has bought goods on credit and now owes the business money for them.
Easy
2. When a business sells goods on credit, does cash change hands immediately?
No -- the customer receives the goods now but pays later
Yes -- cash is always received immediately on a credit sale
Only sometimes, depending on the item being sold
Credit sales never involve any payment at all
Answer: No -- the customer receives the goods now but pays later — A credit sale means the customer receives the goods now but only pays for them later, usually within an agreed period like 30 days.
Medium
3. Name the asset account used to represent money a business is owed by debtors and expects to collect in future.
Answer: Debtors Control — Debtors Control is the asset account that represents money the business is owed by its debtors, expected to be collected in future.
