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Yes, generally a payment towards an account payable affects cash. Unless by some odd chance you are bordering "trading item for item" then you pay with cash. Cash will be credited the amount paid while the account payable will be debited the same amount.
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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.
Which entries records the payment of an account payable?
Debit (decrease) accounts payable and then credit (decrease) cash.
Does a increase in salaries payable decrease cash?
Increase in salaries payable increases the cash account as cash is not paid and due to non payment of cash, cash account showing more balance then it would be if salaries paid already.
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.
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.
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.
Which entries records the payment of an account payable?
Debit (decrease) accounts payable and then credit (decrease) cash.
Does a increase in salaries payable decrease cash?
Increase in salaries payable increases the cash account as cash is not paid and due to non payment of cash, cash account showing more balance then it would be if salaries paid already.
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.
When an accounts payable account is paid in cash the owner's equity in the business decreases True or False?
False. Payment of an accounts payable reduces cash and reduces accounts payable. Equity is not affected.
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 is the difference between a cash payment and a payment made to a vendor or contractor through AP and why is one better than the other?
The difference between a cash payment and a payment made to a vendor or contractor through accounts payable is as follows: In a cash payment, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and hand over the cash to the vendor (by decreasing the cash asset account). For the vendor, they recognize the revenue upon completion (by increasing the revenue account) and move the cash onto their balance sheet (by increasing the cash asset account). In an accounts payable transaction, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and acknowledges the debt (by increasing the accounts payable liability). For the vendor, they recognize the sale (by increasing the revenue account) and acknowledges that the company using their services owes them for the work that they did (by increasing the accounts receivable account). Time eventually passes for the accounts payable transaction and the company that used the services of the vendor sends payment to the vendor (by decreasing the cash account) and acknowledges that the debt is paid (by reducing the accounts payable liability). The vendor receives payment in the mail (by increasing the cash asset account) and acknowledges that the debt is paid (by reducing the accounts receivable asset). The key difference is which party is providing the cash flow. For a cash payment, the transaction is best for the vendor because they are receiving cash immediately. For an AP transaction, the service user is better because they held onto cash for some period of time.
Use cash to pay down accounts payable account equation?
I'm not exactly sure what you are asking, the journal entry for a cash payment to pay down an account payable is as follows:Account Payable (debit) $$$$Cash (credit) $$$$Paying down an account payable is paying partial, so take for example you owe $1500 for a computer you purchased on account and you wish to pay $500 towards the balance. The Journal Entry would be.Account Payable (debit) $500Cash (credit) $500
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.
Does a credit to accounts payable represents cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Does credit to accounts payable represents cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Does a credit to accounts payable represent cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
