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okay lets take a little more detailed look into the basic accounting equation so weve learned already that the basic accounting equation in our assets equals liabilities plus equity and remember our assets are things that we own mmm excuse me liabilities are going to be things that we owe and our equity are going to be the difference between what we own and what we owe and remember that was our ale assets equal liabilities plus equity so lets look at assets a little bit further so Ive already said those are things that we and examples of things that companies own so they own cash accounts receivable accounts receivable our winner customers owe us money so for example they buy a product from us and we will say well send you a bill in 30 days those moneys that our customers owe us are called accounts receivable we could also have notes receivable notes receivable its a little stronger position it has its in writing and has interest in the due date attached to it typically invent