Any increase is an credit for a liability
The transaction would increase an asset account and increase a liability account?
No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.
A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.
A transaction that would increase an asset account and a liability account is when a company purchases inventory on credit. In this case, the inventory account (an asset) increases, while accounts payable (a liability) also increases due to the obligation to pay the supplier in the future. This transaction reflects an increase in both resources owned by the company and the debts owed.
Debits increase assets but decrease liabilities. In accounting, when you debit an asset account, it signifies an increase in that asset. Conversely, when you debit a liability account, it indicates a decrease in that liability. Therefore, debits do not increase liabilities; they have the opposite effect.
The transaction would increase an asset account and increase a liability account?
No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.
A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.
A transaction that would increase an asset account and a liability account is when a company purchases inventory on credit. In this case, the inventory account (an asset) increases, while accounts payable (a liability) also increases due to the obligation to pay the supplier in the future. This transaction reflects an increase in both resources owned by the company and the debts owed.
account payable paid-off by arranging a new loan.
Debits increase assets but decrease liabilities. In accounting, when you debit an asset account, it signifies an increase in that asset. Conversely, when you debit a liability account, it indicates a decrease in that liability. Therefore, debits do not increase liabilities; they have the opposite effect.
indicates an increase in the amount owed to creditors.
account
In accounting, interest and other expenses are neither; they are a contra-equity account. This means that as expenses increase, the owners have less equity. Expenses should normally be treated as a debit account, so as you record interest expenses, you should be crediting either an asset or a liability at the same time.
it's a liability account, it is use to record the amount of money employer owe to employee
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.
increase the balance of the liability account :)