Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

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Accounts Receivable is used when a customer receives a product or service but has not yet paid for it, while Accounts Payable is used when a company has received a product or service but has not yet paid for it. Both of these accounts exist because there is a time delay between the original transaction and the resulting cash flow.

Accounts Receivable and Accounts Payable Are Used When There Is