Difference between CLASSPATH and PATH

So many people are getting confused of Classpath and Path. But it is very simple to understand. A Classpath describes where the required .class files are located. And Path describes where there the required binary executables are located.

For example if we want compile/run any java program we have to set like, C:\Program Files\Java\jdk1.7.0_71\bin in the Path. Because the required executables are available under bin directory.