Monday, May 22, 2017 11:23:53 PM
Accounts payable are goods or products that the company has purchased from another company on credit. This is just like your credit card balance - you got to take possession of the item you purchase but you still owe the $.
AR is generally good as it indicates you're selling your products but you have to actively manage your AR balance to make sure your customers pay you on time and don't abuse the credit you've extended.
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