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This video tutorial explains the definitions of accounts receivable and accounts payable, where they are located on the financial statements, and how journal entries work for them. Accounts receivable and accounts payable are financial terms found on the balance sheet, which shows assets on the left and liabilities on the right. The balance sheet must balance, with the total on the left equaling the total on the right. Typical assets include cash, receivables, inventory, and fixed assets, while liabilities include payables, accrued liabilities, debt, and equity.
