0
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Increase an asset and increase owner's equity?
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
How do you decrease an asset and decrease owners equity?
Credit Decreases an Asset and Debit decreases Owners Equity.
Is cash an asset liability or owners equity?
asset
Is rent income a asset liability or owners equity?
asset liability
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.
Increase an asset and increase owner's equity?
Beacuse assets are increase the wporking capital and we can easily converted them int cash and hence increase the owners equity.
How do you decrease an asset and decrease owners equity?
Credit Decreases an Asset and Debit decreases Owners Equity.
Is cash an asset liability or owners equity?
asset
Is rent income a asset liability or owners equity?
asset liability
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.
Is cash considered an asset liability or owners equity?
Cash is an asset. It could also be part of what makes up an owner's equity.
Is a factory owners equity or asset?
Investment from factory owners is equity and it is shown in balance sheet of business.
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.
Is wages expense a asset liability or owners equity?
neither
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.
How rent paid in advance is treated in accounting equation?
If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +
What transactions increase in one owner's equity equals decrease in another owner's equity?
Profits would increase owners equity, loss and drawing would decrease an owners equity.
