0
What transaction would cause a decrease in a liability and a increase in a liability?
Wiki User
∙ 13y ago
Example
The firm has Accounts Payable that are due. Since they are short of cash, the firm agrees with one supplier that the firm receives an extention of 2 months, with 5% annual interest.
The invoice now needs to be categorized as a note payable. As a result accounts payable is reduced and notes payable increase.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What transaction would cause decrease and increase liability account?
A liability account is money owed by a company. Such as Accounts Payable and Notes Payable.A transaction that would increase a liability account is if you purchased an item on account. This would increase either the Account Payable or Note Payable accounts.A transaction that would decrease these are actual payments you make to the person/company you owe, hence lowering the balance of how much is owed.For example, I purchase a truck costing $15,000, that transaction has increased my liability in notes payable. Once I begin making payments on that truck, each of those payments will decrease the liability.
What will cause a decrease in one liability and an increase in another liability?
Paying off one loan by getting another loan will decrease one liability and increase another.
What transaction would cause increase and decrease asset account?
Wut r u talking about
Can a transaction that causes an increase in an asset also cause a decrease in another asset?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
A transaction that is likely to cause an increase in a current liability is?
The purchase of anything on CREDIT, as long as that account is to be paid off within 1 year (or one accounting period) A current liability is anything a company owes that is reasonably expected to be paid off within one year or one accounting period.
What transaction would cause decrease and increase liability account?
A liability account is money owed by a company. Such as Accounts Payable and Notes Payable.A transaction that would increase a liability account is if you purchased an item on account. This would increase either the Account Payable or Note Payable accounts.A transaction that would decrease these are actual payments you make to the person/company you owe, hence lowering the balance of how much is owed.For example, I purchase a truck costing $15,000, that transaction has increased my liability in notes payable. Once I begin making payments on that truck, each of those payments will decrease the liability.
What will cause a decrease in one liability and an increase in another liability?
Paying off one loan by getting another loan will decrease one liability and increase another.
What transaction would cause increase and decrease asset account?
Wut r u talking about
Can a transaction that causes an increase in an asset also cause a decrease in another asset?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
Does the magnetic field increase or decrease if the current is decreased?
An increase in an electrical current will cause magnetism to increase but a decrease in an electrical current will cause magnetism to decrease.
How does temperature affect the volume of substance?
An increase in temperature will cause an increase in volume, while a decrease in temperature will cause a decrease in volume.
What cause grass to increase or decrease?
The cause of grass to increase/ decrease is how much you water it and not water it, how much sun light it gets and air.
An increase in magnification causes?
The increase in magnification cause a decrease in the field of view.
An increase in magnification causes what?
The increase in magnification cause a decrease in the field of view.
How will this effect the ecosystem as a whole?
The shrimp population will increase which will cause an increase in the squid population.
An increase in product price will cause?
the product supply increase. The quntity deman decrease
Does evaporation of salt water cause it to increase or decrease density?
The density increase after evaporation.
