what is difference between accounts payable and receivable

Understand the key difference between accounts payable (AP) and accounts receivable (AR) in business accounting. Accounts payable refers to the money your business owes to vendors and suppliers for goods or services received on credit, making it a liability on your balance sheet. In contrast, accounts receivable represents the money owed to your business by customers for products or services provided on credit, making it an asset. Learn how managing AP and AR efficiently helps improve cash flow, financial accuracy, and overall business operations.