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When an asset decreases in value your net worth will not change because there was no cash involved?
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What is the similarities and dfferences between capital and income?
Both capital and income are reflected in the asset side. Where as capital being a fixed asset, income from various sources increases or decreases as the case may be, so the later is not stationery.
Is goodwill a tangible asset?
goodwill must be treated as tangible asset because it holds great value for the company. but analysts treat as an intangible asset .
How can derivative increase risk?
Since derivatives are typically highly leveraged, they are almost always riskier that the underlying asset. That is, a small change in asset value will typically produce a much larger % change in the value of the derivative.
What are the causes of liquidity risk?
issues in which a party interested trading on asset cannot do it because nobody in the market wants to trade that asset.
Money is the most liquid asset available because?
it has intrinsic value
Worth of fixed asset after depreciation?
definitely the worth of a fixed asset decreases after charging depreciation on it, because the efficiency of the fixed asset decreases with the every next financial year.
What decreases an asset and liability?
Decrease in asset means being using of it decreases and liability decrease means payable of debts decreases.
How do you decrease an asset and decrease owners equity?
Credit Decreases an Asset and Debit decreases Owners Equity.
Is biological asset is a fixed asset?
No, because biological assets constantly change. Examples of biological assets are property, equipment, etc. A fixed asset does not change.
If a company purchases supplies on account the transaction would result in total asset increasing or decreasing?
I think the total asset will decreases
Is asset management a wise idea to get involved in?
Asset management refers to any systems that monitors and maintains assets that can either be tangible such as building or intangible such as intellectual property. It is always wise to get involved in asset management.
How does depreciation expense reduce net income and have no effect on cash flow?
It reduces the net income because it is an expense. Expenses are deducted from income when computing the net income. It has no effect on cash flow because when the asset depreciates, there's no money involved. The only thing involved in depreciation is the carrying value of the asset.
What decreases an asset account credt or debit?
Assets has debit balance as normal balance so debit balance increases it while credit balance decreases it.
The adjusting entry to record supplies expense accomplishes which of the following?
Decreases an asset and increases an expense.
If payment on a current liability?
Payment On Current Liability Debit The Current Liability (say Sundry Creditor) (Liability Decreases) Credit Cash Or Bank (Current Asset Decreases)
What does it mean by positive beta in finance?
A positive beta means that the asset generally follows the market. A negative beta shows that the asset inversely follows the market; the asset generally decreases in value if the market goes up and vice versa.
A transaction that increases an asset and decreases a liability must also affect one or more other accounts?
TRUE
