Whats is Accounts Payable and Receivables ?

Question

Accepted Answer

Accounts Payable and Receivables are financial terms used in business to track and manage money owed and money owed to the company.

Accounts Payable refers to the money a company 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 company by its customers or clients for goods or services provided but not yet paid for.
Accounts Payable and Receivables are important for managing cash flow and maintaining good relationships with suppliers and customers.
Accounts Payable is a liability for the company, while Accounts Receivable is an asset.
For example, if a company purchases inventory from a supplier on credit, it will record the amount as an Accounts Payable. On the other hand, if a company sells products to a customer on credit, it will record the amount as an Accounts Receivable.

Accepted Answer

Payable -  Money owed by a company to its creditors.
Receivables - Money owed to a company by its debtors

Top LKQ INDIA Process Associate interview questions & answers