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Sometimes business equipment can be bought for cash at a greatly reduced price. This helps keep expenses down in a business if less money is going out for equipment.
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What is a list of the Permanent Accounts in Accounting?
Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Wages Payable, Capital
How does equipment affect cash flow?
Purchase or sale of equipment has direct relation with cash flows if the process is completed with cash that is, if equipment purchased with cash then it will reduce the cash and if equipment is sold in cash then it will increase the cash but if equipment is received or paid for goods or services then it has no direct impact on cash flow.
What accounts are affected and how when merchandise is purchased for cash?
no accounts, the only time an account would be affected is when you withdraw or deposit money into/from it, cash is nearly untraceable and does not affect your bank accounts
Why can't all the balance of payments accounts be in surplus?
The balance of payments accounts cannot be in surplus because there is always a balance in economics. For example, if you used cash assets to purchase equipment, the equipment account will increase but the cash assets account will decrease.
How can a transaction not affect liability and equity accounts?
A shift in assets would not affect liability or equity: Receive payment of an Accounts Receiveable, Purchase a Fixed Asset with Cash, move funds from Cash to Investments (Bonds, etc.).
What is the journal entry for buying a tv commercial?
debit advertisement expensescredit cash / bank / accounts payable
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
What is the journal entry for office equipment purchased for 3000 Half was paid in cash the remaining balance will be paid in 30 days?
[Debit] Office Equipment 3000 [Credit] Cash 1500 [Credit] Accounts payable 1500 When remaining amount paid after 30 days [Debit] Accounts Payable 1500 [Credit] Cash 1500
Why does paying off accounts payable not affect net income?
Paying off accounts payable not affect net income because it is charged to income statement already at time of purchases now it is just the payment of cash which charge cash only.
Which one affect of cash is cash dividend or account payable or depreciation or write of?
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
What types of events make the equipment account go up Are these debits or credits to equipment?
The purchase or receipt of equipment make the equipment (ASSET) account go up. The entry is a debit to equipment and a credit to cash or accounts payable.
What are in assets accounts?
Assets in Accounting is all cash, accounts receivable, inventory, merchandise, property, equipment that is owned by a business and/or company.According to investorwords.com the meaning of Assets in Accounting is...Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property.
