Accounts and Bills payable-Accounts and Bills receivable
Illustrate the difference between Accounts and Bills payable, Accounts and Bills receivable?
Expert
The account payable refers to the debts to be paid off in a given time period to the creditors and where bills payable is the money a bank borrows, primarily on short-term basis and owes to the other banks.
Account receivable refers to the money owed to customer on credit terms for the supply of services or goods and is to be received and where bills receivable are documents received by issuing banks beneath DC.
A) The accounts payable are amounts due to vendors in the customary course of business, like for rent and utilities, supplies, and the like. The note payable symbolizes a loan that bears interest, generally secured by something similar to equipment. A good illustration of this would be whenever you buy a car and are making payments...you encompass a note payable to the bank, and the note contains a stated rate of interest and permanent monthly payments.
B) Similar applies for bills receivable and Accounts receivable.
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