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Accounts receivable and accounts payable are financial terms found on a balance sheet. The balance sheet shows assets on the left and liabilities on the right, with the two sides needing to balance. Typical assets include cash, receivables, inventory, and fixed assets, while liabilities include payables, accrued liabilities, debt, and equity. Companies may use different names for these terms. Journal entries are used to record transactions related to accounts receivable and accounts payable.
