A business or individual to whom a debt is owed.

• A. Cost
• B. Cash Receipts
• C. Creditor
• D. Corporation

Answer: (C)

A creditor is the person or company to whom money is owed. This happens when you borrow funds or buy goods on credit—the lender or supplier is the creditor, and you are the debtor. The description in the prompt clearly matches that role: a business or individual to whom a debt is owed. The other terms don’t fit: cost is the price paid for something, cash receipts are money received, and a corporation is a type of business entity, not the party that is owed money. In accounting terms, amounts owed to creditors appear as liabilities (accounts payable) on the balance sheet.