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what is Account Payable and Account Receivable?


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Accounts payable (AP) is money owed by a business to its suppliers shown as a liability on a company's balance sheet. Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers shown as an asset on company balance sheet.

Fatima Zulfiqar op


Accounts payable is the money a company owes its vendors, while accounts receivable is the money that is owed to the company, typically by customers. When one company transacts with another on credit, one will record an entry to accounts payable on their books while the other records an entry to accounts receivable.

Anoniem op


I explained options very well.

Anoniem op

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