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Accounts receivable and accounts payable are financial terms found on the balance sheet, representing what you are owed and what you owe respectively. The balance sheet shows assets on the left and liabilities on the right, with the total on both sides being equal. Typical assets include cash, receivables, inventory, and fixed assets, while liabilities include payables, accrued liabilities, debt, and equity. Journal entries are used to record transactions related to accounts receivable and accounts payable.
