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A contra account
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∙ 13y ago
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Does a debit reduce an account?
Yes it reduces the amount in the account
Is drawings account is a contra account?
Drawings account is a contra account because it reduces the owner's equity account's normal balance, a credit balance.
What happens when a payment is made on an account payable?
reduces liabilities
Does a debit iincreasse a cash account?
Cash account has a debit as a normal balance so debit increases the cash account and credit reduces the cash account which is reverse of debit balance.
Is biils receivable a personal account?
Yes bill receivable is personal nature of account and debit increases it while credit reduces it.
What balance sheet accounts are affected by the sale of an asset?
Sale of assets reduces the asset account as well as accumulated depreciation account while increases the cash or bank account
A collection of account receivable will affect what account?
A collection for an account receivable will affect two accounts. Cash and the Account Receivable that it is related to.For example, a customer has purchased a computer on account for $1500 and they pay you $500 towards the balance, the two accounts will beCash (db) $500Account Rec-*customer name - (cr) $500Not only did you receive cash, which increases your cash (debit) but the customer paid toward his account and it reduces the amount he owes (credit).
What is the meaning of nominal account and real account and personal account?
The account related to the individual firm , company,and institution is called personal account. THE account related to the things or properties of business organisation whose valuation can be done in terms of cash is called real account. the account related to the income , expenses,profit and gain is called nominal account. .
How does depreciation reduce a taxes?
Depreciation is charged in profit and loss account as expense and it reduces the amount of net profit so in this way it also reduces the income tax payable.
How will posting an amount applied to a deductible affect the balance due on a patient account?
it reduces the balance due.
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.
Treasury stock is classified as?
Treasury stock is a contra-equity account. It reduces shareholder's equity to its true value.
