Using the Accural Method, is the term you failed to mention in that statement. Your describing day to day AR's and AP's, in a list of accounts. Wich is true, inside of day to day accurals. However you have failed to apply, RoC to the General Journal, or General Ledger. Maybe you have just never done GJ or GL? It's why so many employees never understand double taxation, when owners take out capital. Your perspective on accounting is that of an accural employee, never takes into account, cost of or expense of capital, or the eventual payout of capital, which occurs in the general journal or general ledger. You are assuming a continous form of indentical day to day capital structure. Which looks that way in the AR/AP accural depts.