We have covered the most common and most important balance sheet items - Cash, Accounts Receivable and Inventory on the Assets side and Accounts Payable on the Liabilities Side. Does this make the ...

It is important to differentiate between AP and accounts receivable since they represent opposite sides of a credit ... item appears on the balance sheet as a current liability, which typically ...

A basic tenet of double-entry book-keeping is that total assets (what a business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.