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This video explains the financial terms accounts receivable and accounts payable, their definitions and where they can be found on the balance sheet. It also covers how journal entries work for these terms. Accounts receivable and accounts payable are important line items on the balance sheet, representing what is owed and what is owed by the company at a specific point in time. The balance sheet must balance, with assets on the left and liabilities on the right. Typical items on the left side include cash, receivables, inventory, and fixed assets, while payables, accrued liabilities, debt, and equity are common on the right side. Different companies may use different names for these terms.
