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This video tutorial explains the financial terms accounts receivable and accounts payable, highlighting where they are found in financial statements and how journal entries work for them. Accounts receivable and accounts payable are components of the balance sheet, which displays assets on the left side and liabilities on the right side at a specific moment. The balance sheet must show equal sums on both sides. Common assets include cash, receivables, inventory, and fixed assets, while typical liabilities consist of payables, accrued liabilities, debt, and equity. Companies may use varying terms for these categories.
