Accounts receivable are those that the customers owe to the company, while accounts payable are those that the company owes to the different suppliers that may be in charge of providing the company’s different goods and services. The receivables are considered to be the assets of the company. The money will allow the company to survive, especially if the money would be used wisely.
Payables are considered to be liabilities mainly because this refers to the amount of money that the company would need to release to make sure that its operations will still continue. It will be hard for companies to keep on going if they do not have enough funds and items.
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