What is the meaning of Accounts Receivable?

Accounts receivable are the due invoices for a company or the payments which the company has to receive from its clients who have purchased its goods and services on credit. The credit period is usually short and stretches from a few days to months. When the customers buy products from a company on credit, the

What is the meaning of Accounts Payable?

Accounts Payable refers to an accounting entry which stands for an obligation of an entity to pay-off short-term debt to its creditors to avoid default. It is a liability and thus is put under the header of current liabilities in balance sheets of many firms. It is treated as a liability because the company orders