Bextacy Blog

Here are some common accounting definitions.  Account payable and account receivable. Account payable is the amount owed by creditor for the delivery of services or goods received.  Where as account receivable is what a debtor owes the company for any amount that they did not pay after a sale and or service had been rendered.  Another accounting definition is accrual basis.  This is when revenue is recognized only when it is earned, rather than when it is collected.A good example would when you bill a debtor, is the accrual bases for counting revenues as oppose to when you receive payment.