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Accounts Payable is a liability. Accounts receivable is an asset.
When company make sales in credit it creates the accounts receivable while when company purchases on credit it creates the accounts payable so accounts receivable is current asset while accounts payable is current liability.
account payable
Accounts payable and accounts receivable are the same for any business, whether service, merchandising, or even medical billing. An account payable is any account that the company or business owes to another entity. It is a liability account and goes under liabilities until the balance is paid in full. An account receivable is just the opposite. Is the account balance of what another entity owes you. Account receivable is an asset account and goes under assets on the balance sheet. Both accounts receivable and accounts payable can be listed as either current or non-current, depending on the length of time required to satisfy the debt. For medical billing let us just say that an account receivable would be an account that a patient (or even government entity) may owe you. Account payable is what you owe the another entity.
accounts payable
Notes Receivable are "not" classified as a liability at all, since they are receivable (meaning the company will receive them) they are classified as Long Term Assets. Accounts Receivable (Current Asset) Notes Receivable (Long Term Asset) Accounts "Payable" (Current Liability) Notes "Payable" (Long Term Liability)
Accounts receivable is that portion of sales which are made on credit and money is agreed to be received in future that;s why accounts receivable is an asset of company and that's why not treated as a liability of company
accounts payable is a liablity.
account payable is the liability of creditor.
Liability Accounts record obligations of a business towards its creditors. Examples of liability accounts are Accounts Payable, Interest Payable, Wages Payable. These accounts appear on the balance sheet.
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the very same thing, hence the term "payable". Though some payable accounts change from being a payable to an expense, they are still liabilities as long as they are "payable", these include: Interest Payable (liability until paid, then reverts to Interest Expense) Salary or Wages Payable(liability until paid, then reverts to salary or wage expense) Payable accounts maintain a "credit" balance, meaning they increase with a Credit and Decrease with a debit. Now the quick answer: Payable = Liability Receivable = Asset
Notes Payable is a liability, so it would normally have a credit balance. Accounts Receivable is an asset which would normally have a debit balance.