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Does the payment of a liability decrease both cash and accounts payable?
Wiki User
∙ 13y ago
no it just decreases cash
Wiki User
∙ 13y ago
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Payments of accounts payable will have what affect on total assets?
Making a payment on an account payable will decrease cash. At the same time it will also decrease your liability for that same amount.
Payment on a portion of Accounts Payable will?
decreases the liability.
Which entries records the payment of an account payable?
Debit (decrease) accounts payable and then credit (decrease) cash.
A payment of a portion of an accounts payable will?
Decrease Cash (credit) and Decrease Account Payable (debit). This is if you're paying cash which of course is the common way to pay an account payable. An account payable is what you owe another person or company, by paying even a portion of the account it will decrease your liability (what you owe) as well as decreasing your amount of cash on hand.
What are the accounts payableS on the trial balance?
Accounts payable is a short-term liability representing cash owed to vendors. When a company is invoiced by a vendor, accounts payable is increased. When payment is rendered, the accounts payable balance decreases.
Decrease an asset account and decrease a liability account?
if you have a asset and you sale it and then money which you get pay as a liability so decreas in asset and decreas in liability occurs.
Payments of accounts payable will have what affect on total assets?
Making a payment on an account payable will decrease cash. At the same time it will also decrease your liability for that same amount.
Payment on a portion of Accounts Payable will?
decreases the liability.
Which entries records the payment of an account payable?
Debit (decrease) accounts payable and then credit (decrease) cash.
Is accounts payable a debit or credit?
Accounts Payable is the amount which is payable by company for the merchandise purchased by company but payment is due in future, as it is the liability of company so like all liability accounts it has credit balance as normal balance.
A payment of a portion of an accounts payable will?
Decrease Cash (credit) and Decrease Account Payable (debit). This is if you're paying cash which of course is the common way to pay an account payable. An account payable is what you owe another person or company, by paying even a portion of the account it will decrease your liability (what you owe) as well as decreasing your amount of cash on hand.
What are the accounts payableS on the trial balance?
Accounts payable is a short-term liability representing cash owed to vendors. When a company is invoiced by a vendor, accounts payable is increased. When payment is rendered, the accounts payable balance decreases.
Payment of accounts payable increase or decrease current ratio?
It depends from which source accounts payable are clearing if it is from current asset then it will reduce the current ratio
Do increase in accounts payable increase or decrease cash flow?
Increase in Accounts payable increases the cash flow because if we had paid accounts payable it will reduce our cash immediately but instead of paying cash we defferred the payment for future time and save the cash that's why it increases the cash flow. Following are simple rules to determine effect on cash flow increase in asset reduces the cash flow decrease in asset increase the cash flow increase in liability increase the cash flow decrease in liability decrease the cash flow
Does a decrease in accounts payable decrease cash flow?
Yes decrease occurs due to payment of cash to creditors which causes the cash to reduce as well.
What is the journal entry for accounts payable?
I think in this question something is missing : The Expense A/c or Service A/c Dr from which regards we have liability to pay and Cr. the Account payable A/c. For example : We purchased goods from BM Bros. on credit for Rs. 10000. The entry would be passed: BM Bros A/c Dr. To Accounts Payable A/c Here liability is increase and equity is decrease because we have to pay the outstanding amount, on the payment the entry will be: A/c Payable Dr. To Cash/ Bank A/c
What is payable liabilities in accounting?
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year.
