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Business 101: What Do The Terms Account Balance, Accounts Payable, and Accounts Receivable Mean?

Business 101: What Do The Terms Account Balance, Accounts Payable, and Accounts Receivable Mean?

There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.  

Well, here at 2BH we’re going to give you the answers to the questions you might have been too embarrassed to ask.

Here are the terms for today:

What do the terms “account balance,” “accounts payable,” and “accounts receivable” mean?

Account balance is the amount of a particular account at a particular time.

Accounts payable is the amount you owe vendors for supplies or services that they’ve already provided.

Accounts receivable is the amount that clients or customers owe you for products or services that you’ve already provided.

Photo by Dennis Wong

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About Scott Aughtmon (1872 Articles)
I’m author of the book 51 Content Marketing Hacks. I am also a regular contributor to ContentMarketingInstitute.com and I am the person behind the popular infographic 21 Types of Content We Crave. I’m a business strategist, consultant, content creation specialist, and speaker. I’ve been studying effective marketing and business methods (both online and offline) since 1999. ===> If you would like to see ways that we could work together, then please click here to learn more.