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This video tutorial explains the financial terms "accounts receivable" and "accounts payable," their definitions, and their locations on financial statements. Both terms appear on the balance sheet, which represents a company's financial position at a specific time, showing what it owns (assets) and what it owes (liabilities). The balance sheet must balance, meaning the sum of assets on the left side must equal the sum of liabilities on the right side. Common items listed under assets include cash, receivables, inventory, and fixed assets, while liabilities consist of payables, accrued liabilities, debt, and equity. Different companies may use varying names for these line items.
