Accounts receivable is money receivable but not actually received. It is an asset account. Accounts payable are amounts that should be paid but have not actually been paid, and are liability accounts.

Accounts receivable refers to the amount of money that an enterprise should collect from the purchasing unit for selling goods, products, providing labor services and other services in the normal course of business, including the amount that should be borne by the purchasing unit or the unit that receives labor services. Taxes, various shipping and miscellaneous charges advanced on behalf of the buyer, etc. Accounts receivable is a creditor's right that accompanies a company's sales.

Accounts payable are fees and commissions that should be paid by the enterprise (finance) but have not yet been paid. It is a type of accounting account used to calculate the payments that an enterprise should make for business activities such as purchasing materials, goods, and accepting labor supply. Usually refers to debts incurred due to the purchase of materials, goods or the acceptance of labor supply, etc. This is a liability incurred by buyers and sellers due to the inconsistent time between obtaining materials and paying loans during purchase and sale activities.

Extended information:

Asset accounting accounts

1. Cash on hand

Cash on hand refers to the unit’s sporadic expenditures in order to meet the needs of its operations. The cash retained for payment needs and the supervision and inventory of cash on hand can determine the true existence of cash on hand and the effectiveness of cash on hand management, which will play a positive role in evaluating the internal control system of the enterprise.

2. Bank deposits

Bank deposits refer to the monetary funds deposited by enterprises in banks and other financial institutions. According to the provisions of the national cash management and settlement system, every enterprise must open an account in a bank, called a settlement account deposit, which is used to handle deposits, withdrawals, and transfer settlements.

3. Other monetary funds

Other monetary funds refer to various other monetary funds except cash and bank deposits. Other monetary funds include deposits from other places, bank draft deposits, cashier's check deposits, letter of credit deposits, credit card deposits and investment deposits.

4. Trading financial assets

If one of the following three conditions is met, they will be converted into trading financial assets:

(1) Purpose of acquiring financial assets It is for sale or repurchase within a short period of time.

(2) It is part of a portfolio of identifiable financial instruments that are managed centrally, and there is objective evidence that the enterprise uses short-term profit-making methods to manage the portfolio.

(3) It is a derivative instrument. However, if the derivative instrument is designated by the enterprise as an effective hedging instrument, it should not be recognized as a trading financial asset.

5. Notes receivable

As a kind of debt certificate, notes receivable refer to commercial bills received by an enterprise for selling goods, products, providing services, etc., including commercial acceptances Bills of exchange and bankers' acceptances. According to the provisions of the Negotiable Instruments Law, the payment term of a commercial bill must not exceed 6 months. Therefore, my country's commercial bill is a kind of current asset.

Reference: Baidu Encyclopedia—Accounts Payable