What do you know about Accounts Payable and Accounts Receivable?

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Accounts Payable and Accounts Receivable are two important aspects of financial management in a business.

Accounts Payable refers to the money a business owes to its suppliers or vendors for goods or services received but not yet paid for.
Accounts Receivable refers to the money owed to a business by its customers or clients for goods or services provided but not yet received payment for.
Accounts Payable is a liability for the business, while Accounts Receivable is an asset.
Both Accounts Payable and Accounts Receivable are tracked in the company's financial statements, such as the balance sheet and income statement.
Effective management of Accounts Payable and Accounts Receivable is crucial for maintaining healthy cash flow and financial stability in a business.

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