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When two asset accounts are changed in a transaction there must be an increase and a decrease?
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.
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.
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
What an example of a decrease in an asset and a decrease in a liability?
Paying A/P: Decrease in Cash (Asset), Decrease in A/P (Liability)
The transaction would increase an asset account and increase a liability account?
The transaction would increase an asset account and increase a liability account?
What transaction would decrease an asset account and decrease the owner's equity account?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What transaction would decrease an asset account and decrease the owner and equity account?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What transaction would decrease an asset account and decrease the owner equity account.?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What decreases an asset and liability?
Decrease in asset means being using of it decreases and liability decrease means payable of debts decreases.
What will increase asset and decrease liability?
This is a difficult question to answer. I've been going through all transactions I can think of but none that will increase an asset and decrease a liability in the same transaction. Receiving cash payment for an account receivable will increase the asset of cash, but it also decreases the asset of AR. The purchase of equipment or supplies will do increase supplies or equipment but will either decrease the asset of cash or if bought on account will increase liability by increasing an account payable. Remember there's always an equal debit and credit with any transaction. The term debit or credit doesn't indicate which of the accounts are used. You can debit and credit on both sides of the accounting equation in one transaction. Assets increase by receiving money, supplies, property, or equipment, when any of these are increased with a debit then an opposite credit MUST occur. If you receive money for a purchase the asset of Cash increases, but then so does the Owners Equity account of Revenue. (this doesn't have anything to do with liabilities.) A liability is something your company owes, to decrease a liability a company makes a pay out in some form (usually cash), this will also decrease your assets (not increase).
What is the effect of this transaction on individual asset accounts individual liability accounts and the Owner's Equi?
The effect of a transaction on individual asset accounts generally results in an increase or decrease in the value of specific assets, such as cash or inventory. Liability accounts may also be affected, either increasing if the transaction involves borrowing or decreasing if debts are paid off. Owner's equity is impacted based on the nature of the transaction; for example, revenues increase equity while expenses decrease it. Overall, the transaction reflects changes in the accounting equation: Assets = Liabilities + Owner's Equity.
How does a stock repurchase affect the accounting equation 1 Decrease asset increase equity 2 Increase asset decrease liability 3 Decrease equity increase liability 4 Decrease asset decrease 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.
