accounts receivable vs accounts payable
The difference between accounts receivable and accounts payable. Accounts receivable are the amounts owed to a company by its customers, while accounts payable are the amounts that a company owes to its suppliers.
1 Accounts Payable (A/P) is recorded as a liability, while Accounts Receivable (A/R) is considered an asset. 2  Accounts Payable (A/P) will decrease the companyâs cash while the opposite will happen with Accounts Receivable (A/R).
Other differences between accounts receivable and payable are as follows: 1  Receivables are classified as a current asset, while payables are classified as a current liability. 2  Receivables may be offset by an allowance for doubtful accounts, while payables have no such offset.