What is accounts receivable or 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 refers to the outstanding invoices or money owed to a company by its customers for goods or services provided.
Accounts payable refers to the outstanding invoices or money that a company owes to its suppliers for goods or services received.
Accounts receivable is an asset on the company's balance sheet, while accounts payable is a liability.
Managing accounts receivable involves tracking and collecting payments from customers, while managing accounts payable involves ensuring timely payment to suppliers.
For example, if a company sells products to a customer on credit, the amount owed by the customer becomes accounts receivable. On the other hand, if a company purchases raw materials from a supplier on credit, the amount owed to the supplier becomes accounts payable.

Accepted Answer

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.

Top Capgemini SAP Fico Consultant interview questions & answers