(Hurst, Texas, United States)
Q: Accounts Receivable vs. Accounts Payable?
The answer to this short question is to define the two terms and see how they differ.Accounts Receivable
is an account containing all amounts owing to us. It is all the amounts we expect to receive
. In other words, our debtors
. Accounts Payable
is an account containing all amounts that we owe to others. It is all the amounts we expect to pay
in the future. In other words, our creditors
Hope that make sense Tarig.
Add more questions if you're not still not sure. Also, check out the lessons in the section on Basic Accounting Concepts.