what is the difference between accounts payable and accounts receivable?

Accounts payable and accounts receivable are two different things. But, how do you know what they are? Or, how do you make sure you don't mix these up when you're running your business? Let's take a look at what accounts payable and receivable are, how to distinguish between these two items, as well as when there might be confusion of the two.

I suggest to read all info really attentive at what is the difference between accounts payable and accounts receivable. Accounts payable and receivables are two different accounts in a company's accounting system that show the incoming and outgoing transactions of cash. The former refers to the outflow of cash needed for purchasing materials, selling goods, paying salaries and other expenses, while the latter describes money coming in as an income from selling products or services.