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Yes owner withdraws in form of cash or assets so ultimately it reduces the assets of business as well.
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How does paying a liability with cash affect the accounting equation?
assets decrease; liabilities decrease
What is the journal entry when the owner withdraws money from the business account for personal use?
debit drawingscredit cashDebit - Accounts Receivable - Owner Credit - Cash
When a business pays cash for salaries assets decrease and expenses?
INCREASE
Does a change in current assets increase or decrease cash flow?
It depends on the current asset, so the change of current asset might be increase or decrease cash flows.
Is payment by check a credit or cash transaction?
Paying by cheque is a cash transaction. Assets: debit =increase credit=decrease
When an owner withdraws cash or other assets from a business for personal use these withdrawals are termed?
Drawings.
When the owner withdraws cash the owner's drawing account is?
decreased by a debit
How does paying a liability with cash affect the accounting equation?
assets decrease; liabilities decrease
What is the journal entry when the owner withdraws money from the business account for personal use?
debit drawingscredit cashDebit - Accounts Receivable - Owner Credit - Cash
Is paying cash for a dividend an increase or a decrease to your assets?
stock dividends what impact on total assets
When a business pays cash for salaries assets decrease and expenses?
INCREASE
What is the effect on total assets of the purchase of land for cash?
An increase in Land and a decrease in cash, total effect is zero.
When en expense is paid in cash net what is the effect on net assets and profit?
net assets decrease and profit decreases
Does a change in current assets increase or decrease cash flow?
It depends on the current asset, so the change of current asset might be increase or decrease cash flows.
What will a decrease a revenue and a decrease in assets?
A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash). A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.
Is payment by check a credit or cash transaction?
Paying by cheque is a cash transaction. Assets: debit =increase credit=decrease
What will a purchase of an asset for cash do?
A purchase of an asset for cash will increase total assets(casH) and increase total owner's equity (capital).
