what is the difference between accounts payable and receivable

Learn the key differences between accounts payable and accounts receivable in accounting. Accounts payable (AP) refers to money a business owes to vendors, while accounts receivable (AR) is money owed to the business by customers. Understanding the distinction between these two financial terms is crucial for managing cash flow, financial reporting, and maintaining accurate records. This guide explains how AP and AR impact your business’s financial health and helps you optimize your accounting practices for success