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Hi, Else here. And today, well start our discussion about accounts receivable. What are accounts receivable? To understand that, lets step back for a minute and look at previous videos. When we sell goods or services, we sometimes sell them in exchange for cash. This is a transaction. And in order to analyze any transaction, we have to ask ourselves the critical questions. Those are, what did we get and what did we give away? If theres still confusion, we can ask ourselves the enhancing questions that help us clarify our thinking, what did we earn, what do we use or consume, and what do we owe? For this transaction, we have to ask ourselves what did we get? We got cash. Thats an asset because it has future economic benefit. What did we give away? We gave away a good or service and that means we earned revenue. What would the impact of this entry look like on the accounting equation? There would be an increase in assets, cash, and an increase in equity through revenues. This is an e
