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The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
Decrease asset; since repurchase is with cash, whis is an asset Decrease equity; if repurchased stock is not to be reissued, it is declared void and the number of outstanding assets is decreased. Hence, equity is decreased.
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
Decrease asset; since repurchase is with cash, whis is an asset Decrease equity; if repurchased stock is not to be reissued, it is declared void and the number of outstanding assets is decreased. Hence, equity is decreased.
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +
no, increase liability
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
A purchase of an asset for cash will increase total assets(casH) and increase total owner's equity (capital).
Increase in total assets generates increase in either one of liablity account or ultimately an equity account.
asset equity
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
asset equity
Since both sides of the balance sheet (the Assets side and the Liabilities/Owners' Equity side) must have equal totals, an entry showing an increase in an asset must be balanced with an corresponding increase in a liability or a decrease in another asset.Generally, an increase in an asset (e.g., the acquisition of a new asset) means that either we have decreased another asset (e.g., cash) to pay for it, or we have incurred debt to acquire the asset (thereby increasing our liabilities).1) increase in one asset - corresponding decrease in another asset (e.g. we pay cash for new asset)2) increase in one asset - corresponding increase in a liability (e.g., we acquire an asset on credit)