Accounts Receivable vs Accounts Payable - Top 9 Differences

DIFFERENCES BETWEEN 3 4 5 6 : 9 0 ACCOUNTS RECEIVABLE $ 2$ AND ACCOUNTS PAYABLE Meaning Accounts Receivable is the amount Accounts Payable is the amount that the company owes to its suppliers that the customers of the company owe to it Position on the Balance sheet E Accounts Receivable is on the Accounts Payable is on the current liability of the current asset of the balance sheet balance sheet Offset Receivables can be offset with the allowance of doubtful Payables have no offset debts - Type of accounts Payables have multiple categories of accounts like sales payable, interest payable, income taxes payable Receivables have only one category of account, i.e., trade receivables Cause This account is created because This account is created because of the selling of goods and of purchasing material on services credit Impact on cash flow E Results in Cash inflow Results in Cash outflow Action Money to be collected Money to be paid Accountability H Accountability lies on the debtors Accountability lies in the business Туpes Bills receivables and debtors Bills payable and creditors RAYVAT [email protected] +1 (888) 865-5255 intelligent outsourcing