accounts payable vs receivable are counterparts in financial account transaction. AP entails out-payments-this is the responsibility of a business paying its suppliers. On the contrary, AR deals with incoming payments- rates that a business anticipates receiving in form of payments by a customer. Assets AP is recognized as a liability on the balance sheet, but AR is an asset. A good management of the two balances the flow of cash. The objective of the businesses is to prolong AP to keep the cash longer and speed up AR to earn cash. The two are instrumental in the fiscal well being of a business.