What are debtors classified as?

Debtors are classified as individuals or entities that owe money to another party, typically as a result of borrowing or credit transactions. They can be categorized into different types, such as personal debtors, who owe money to banks or credit institutions, and business debtors, who owe money to suppliers or lenders. In accounting, debtors are often recorded as accounts receivable on a company's balance sheet, reflecting the amounts expected to be collected. Overall, debtors represent a key component of credit risk and financial management in both personal and business contexts.