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in this video you are going to learn the difference between account payable and account receivable [Music] lets start the video in accounting we often get confused between account payable and accounts receivable so it is important to differentiate between accounts payable versus accounts receivable because one of them is a liability account and the other is an asset account mixing up these two can cause a lack of balance in your accounting equation which carries over into your basic financial statements [Music] what are accounts payable [Music] accounts payable are current liability accounts that keep track of money that you owe to any third party the third parties can be banks companies or even someone from who you borrowed money [Music] one common example of accounts payable is purchases made for goods or services from other companies depending on the terms of repayment the amounts are typically due immediately or within a short period now come to what are accounts receivable accoun
