What is the difference between accounts receivable and accounts payable?

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. Accounts payable are liabilities. read more

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. read more

Major difference between accounts payable and receivable are that account receivable exist as a result of credit sales and it is the total amount that the consumers have to pay off to the business. On the contrary, accounts payable exist as a result of credit purchases and it is the total amount owed by the organization to the external suppliers. read more