Question
Accounts Payable and Accounts Receivable
Answer :
Word Count : 131
| Aspect | Accounts Payable (AP) | Accounts Receivable (AR) |
|---|---|---|
| Definition | Money a business owes to its suppliers or creditors for goods/services purchased on credit. | Money owed to a business by its customers for goods/services sold on credit. |
| Role in Cash Flow | Represents cash outflow. | Represents cash inflow. |
| Example | Paying electricity bills, supplier invoices, ____ ________ _______ _________ ______ ____. ________ _________ ___ ___ ________ __________ _________ ________ ______ _________ ____ ____. ____ _______ ______ ___ ___ ___ ______ ____ ________. ________ ___ _______ ________ _______ _______. _____ ___ _________ _____ __________ ______. _____ _______ ______ _______ _____ __________ _____. ___ __________ _____ __________ _________ _________. __________ _____ ____ ______ _______. _______ ________ ____ _______ _________ ______. ______ ________ _____ __________ _____ ___ _____ _______ ____ ____ ______ ______. _________ ______ ____ _________ ___. _________ ____ _________ _______ ______ ____ ___ _________ ______ ___. IGNOU ACADEMY Your IGNOU journey, made easier.
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