how are accounts receivable different from accounts payable 
accounts receivable represent funds owed to the firm for services rendered and they are booked as an asset accounts payable on the other hand represent funds that the firm owes to others for example payments due to suppliers or creditors payables are booked as liabilities the bottom lineaccounts receivable is one of the most important line items on a company s balance sheet it is money owed to a company from the sale of its goods or services to customers that has not yet been paid the shorter the time a company has accounts receivable balances the better as it means the company is being paid fast and it can use that money for other business aspects 