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account payable paid-off by arranging a new loan.
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∙ 14y ago
Awais khan
Karl Dave
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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.
Does a debit decrease liability?
Yes, a debit decrease liability and a credit increase liability. if a debtors/customer make the repayment obligation, it will decrease debtors, meaning decrease in liability.
Is liability credit or debit?
Increase liabilities = credit Decrease labilities = debit
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.
What would happen to the other side of the journal entry with a decrease in an asset?
there should be increase in any other asset or decrease in liability or decrease in owners equity to balance.
What records a decrease in liability?
Records of decrease in a liability is Debit
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)
Do increase in accounts payable increase or decrease cash flow?
Increase in Accounts payable increases the cash flow because if we had paid accounts payable it will reduce our cash immediately but instead of paying cash we defferred the payment for future time and save the cash that's why it increases the cash flow. Following are simple rules to determine effect on cash flow increase in asset reduces the cash flow decrease in asset increase the cash flow increase in liability increase the cash flow decrease in liability decrease the cash flow
What would decrease liability?
Debit balance would decrease the liability as credit balance increases the liability.
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 increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
Does a credit to a liability account increase or decrease amount owed?
It increases the amount owed, because creditors would be credited
