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Accounting term definition

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avin:
Hey guys,

What is the meaning of bill payable and Account payable? What are the differences between two of them?
Thanks.

$tyli$h Executive:
Found these from another website:

Accounts payable: A debtor's accounts of money he owes; normally arise from the purchase of products or services.

& Bills payable: Bill means (An itemized statement of money owed for goods shipped or services rendered). The outstanding bills (like for instance utility bills etc) yet to be paid.

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Accounts payable refer to the current liability of a business or an organization. That is the unsettled payments in a business or an organization refers to Accounts payable. Bills payable refers to bills settled. In other words the paid and accepted recorded bills in a business or an organization refers to bills payable

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Accounts payable: A debtor's accounts of money he owes; normally arise from the purchase of products or services.

& Bills payable: Bill means (An itemized statement of money owed for goods shipped or services rendered). The outstanding bills (like for instance utility bills etc) yet to be paid.

avin:
is it means that bill payable and account payable are actually the creditors of the business owner. The only different is that the amount owing is stated on the bill but how about account payable?

It is confusing for me.

Alpha:

--- Quote from: avin on March 11, 2011, 04:28:59 am ---is it means that bill payable and account payable are actually the creditors of the business owner. The only different is that the amount owing is stated on the bill but how about account payable?

It is confusing for me.

--- End quote ---

Yes, both are creditors. Accounts Payable are creditors for the goods in which the business specialises, in case for retailing businesses, in merchandise.

avin:
Alpha, how about bill payment?

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