What is accounts payables and receivables

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Accounts payables and receivables are the money owed by a company to its suppliers and the money owed to the company by its customers, respectively.

Accounts Payable: Money owed by a company to its suppliers for goods or services received but not yet paid for.
Accounts Receivable: Money owed to a company by its customers for goods or services provided but not yet paid for.
Accounts Payable and Receivable are important for managing cash flow and maintaining good relationships with suppliers and customers.
Example: If a company purchases $10,000 worth of goods from a supplier but has not yet paid for them, this is recorded as an accounts payable. If a company sells $5,000 worth of goods to a customer but has not yet received payment, this is recorded as an accounts receivable.

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