MANAGEMENT

Detailed explanation-1: -Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR.

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: -Explanation: Accounts receivable is defined as money owed to a company by itsdebtors.

Detailed explanation-4: -Accounts payable (AP) is money owed by a business to its suppliers to vendors and suppliers for goods that have not been paid for.

Detailed explanation-5: -In the Accounting world, the amount that is owed is called an Accounts Payable. Think of Accounts Payable simply as an I.O.U. This I.O.U. originates when a company purchases anything on credit.