Pls define the terms, accounts payable, accounts receivables, bills payables, bills receivables?

Question

Pls define the terms, accounts payable, accounts receivables, bills payables, bills receivables?

Answer 1

Accounts Payable:  Accounts of money you owe.  A liability that is usually created when you've made a purchase on credit.

Accounts Receivable: Accounts of money owed to you for the sale of goods or services.

Bills Payable: in merchant accounts, are all bills which have been accepted, and promissory notes which have been made, are called "bills payable," and are entered in a ledger account under that name, and recorded in a book bearing the same title.

Bills Receivable: in merchant accounts, are all promissory notes, bills of exchange, bonds, and other evidences or securities which a merchant or trader holds, and which are payable to him.