What is account Receivable and payable?

Question

Accepted Answer

Accounts Receivable is the money owed to a company by its customers while Accounts Payable is the money a company owes to its suppliers.

Accounts Receivable is an asset account that represents the amount of money owed to a company by its customers for goods or services provided.
Accounts Payable is a liability account that represents the amount of money a company owes to its suppliers for goods or services received.
Accounts Receivable and Accounts Payable are both important components of a company's working capital management.
Examples of Accounts Receivable include outstanding invoices, credit sales, and customer deposits.
Examples of Accounts Payable include unpaid bills, invoices from suppliers, and employee salaries.

Accepted Answer

The amount of company owed by the customer for the good and services provided is Accounts Receivable

The amount of company which owes its suppliers for the good and services received is Accounts payable

Top Accenture R2R Process Associate interview questions & answers