0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is money owed by a customer an asset or a liability?
yes- (it is an asset)
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
Does a credit to a liability account increase or decrease amount owed?
It increases the amount owed, because creditors would be credited
What is the amount owed to a business that are on a credit basis are considered a current asset on the book?
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Is money owed by a customer an asset or a liability?
yes- (it is an asset)
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
An amount owed by a business?
Liability
What is the amount owed to creditors called?
liability
Does a credit to a liability account increase or decrease amount owed?
It increases the amount owed, because creditors would be credited
Amount owed to a business that are on a credit basis are considered a current asset on the books and?
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
What is the amount owed to a business that are on a credit basis are considered a current asset on the book?
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
A credit to a liability account?
indicates an increase in the amount owed to creditors.
Amounts owed to a vendor is it a liability asset revenue epense or divedend?
Anything "owed" is a liability to the company until it is paid.Gathering what I can from the question, I am assuming the "vendor" would be a person/company that supplies a product that another company resales for profit. In other words it is their Inventory, When the merchandise is recieved, at the moment of receipt if the amount isn't paid and is put on account (owed) then journal entry is adebit to Inventorycredit to Account Payable.Since this is a debt it is recorded as a liability, once it is paid however, the transaction goes as followsdebit to Account Payablecredit to CashThe inventory itself remains an asset until it is sold, then the asset decreases and then and only then is the cost initially paid recorded as an expense.
Are installment account receivables a current asset or liability?
Account receivables are always assets. It's money that is owed to you by another. The length of time in which that money is expected to be collected determines whether it's a current asset or long term asset.
What may be a current liability?
A current liability is an amount owed within a 1-year period for goods or services received. Accounts payable is the most common current liability.
