Creditors & Credit Purchases 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 creditor?
A supplier the business owes money to after buying goods on credit
A customer who owes the business money
A bank that only lends to large companies
A type of cash transaction
Answer: A supplier the business owes money to after buying goods on credit — A creditor is a supplier the business has bought goods from on credit, and now owes money to.
Easy
2. When a business buys stock on credit, is cash paid immediately?
No -- the business receives the stock now but pays for it later
Yes -- cash is always paid immediately on a credit purchase
Only if the supplier insists on immediate payment
Credit purchases never involve payment at all
Answer: No -- the business receives the stock now but pays for it later — A credit purchase means the business receives the stock now but only pays for it later, just as a credit sale means a customer receives goods now but pays later.
Medium
3. Name the liability account used to represent money a business owes to its creditors and will need to pay in future.
Answer: Creditors Control — Creditors Control is the liability account that represents money the business owes its creditors, to be paid in future.
