BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accounts payable is the amount of short-term debt or money owed to suppliers and creditors by a company. Accounts payable are short-term credit obligations purchased by a company for products and services from their supplier.

Detailed explanation-2: -Accounts receivable – sometimes called trade receivable – is any money that your customers or clients owe you for a service or product they bought on credit. This money can be from goods they put on their store accounts, or from any unpaid invoices for services.

Detailed explanation-3: -The accounts receivable (debtor) and accounts payable (creditor) accounts, account codes 1100 and 2100, are nominal accounts used to record debt-i.e. how much money customers owe to you, and how much money you owe to your vendors.

Detailed explanation-4: -Accounts receivable is what you’re owed by customers. Once you send an invoice (or bill), it becomes part of your accounts receivable – until it’s paid. Accounts receivable is the name given to both the money that’s owed, and the process of collecting it.