what is difference between accounts receivable and accounts payable ?
Answer
- Lata
- 26 Jan
- 25456 Views
- 351 Answers
Your Answer
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SaiSR
- 02 Aug
Accounts receivable refers to the outstanding amount the company is owed from its clients.AR issue raises when companies allow some portion of their sales to be on credit.AR is a current asset for the company.Any amounts receivable within 1 year are treated as AR.
Accounts payable refers to the outstanding amount the company is owed to its suppliers.AP are current liablities for the company.when the company made purchases on credit basis rather than signing notes payable liabilities it is recorded as accounts payable.Any amounts payable within 1 year are treated as AP.
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