What is the difference between accrual and accounts payable? How can one distinguish these two?
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Difference between accrual and accounts payable
Replies (2)
Respected Madam
Accrual Accounting means recording of transactions of a particular Business entity , weather Revenue or Expense , received , paid in Cash or not in a particular accounting period .
Accounts payable is liability to pay expense to Trade creditors . Carried forward to next accounting period not if paid in the particular accounting period .
Accrual Accounting
Both types of transactions recorded in Account Books i.e. cash or credit transactions
Accounts Payable
is current liability, amount payable to creditors for items etc. purchased by you from creditors
Both types of transactions recorded in Account Books i.e. cash or credit transactions
Accounts Payable
is current liability, amount payable to creditors for items etc. purchased by you from creditors
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