What are some examples of accounts payable?

What are some examples of accounts payable?

What is an Example of Accounts Payable Expenses?

• Transportation and Logistics.
• Raw Materials.
• Power / Energy / Fuel.
• Products and Equipment.
• Leasing.
• Licensing.
• Services (Assembly / Subcontracting)

What are the examples of accounts receivable?

An example of accounts receivable includes an electric company that bills its clients after the clients received the electricity. The electric company records an account receivable for unpaid invoices as it waits for its customers to pay their bills.

What is the difference between accounts receivable and accounts payable?

A company’s accounts payable (AP) ledger lists its short-term liabilities — obligations for items purchased from suppliers, for example, and money owed to creditors. Accounts receivable (AR) are funds the company expects to receive from customers and partners. AR is listed as a current asset on the balance sheet.

What is Accounts Payable in simple words?

Accounts payable is any sum of money owed by a business to its suppliers shown as a liability on a company’s balance sheet. In simple words, when you buy goods or services with an arrangement to pay at a later date, such amount till it is paid is referred to as accounts payable.

What are receivables?

What Are Receivables? Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Is invoicing accounts payable or receivable?

Accounts Payable (AP) is recorded in the AP sub-ledger when an invoice is approved for transactions where the company must pay money to vendors for the purchase services or goods. On the other hand, Accounts Receivable (AR) records any money that a company is owed because of the sale of their goods or services.