Accounts payable (AP) and accounts receivable (AR) are two types of financial transactions that businesses engage in.
Accounts payable (AP) represents the amount of money a company owes to its suppliers or vendors for the goods or services they have provided. In other words, it is the amount of money that a business owes to other businesses or individuals for goods or services that have been purchased on credit.
Accounts receivable (AR), on the other hand, represents the amount of money that is owed to a business by its customers or clients for goods or services that have already been sold or provided. It is the amount of money that a business is waiting to collect from its customers or clients.
