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When supplies are purchased on account, it increases assets and liabilities in the accounting equation. Specifically, supplies (an asset) increase, while Accounts Payable (a liability) also increase by the same amount. This keeps the accounting equation balanced, as the increase in assets is offset by an equal increase in liabilities.
What else can I help you with?
What is the basic summary device of accounting?
account or accounting equation
How do withdrawals affect the accounting equation?
Debit Withdraw account and Credit Cash
What purchase of supplies on account is recorded in the?
The amount which is paid on account(credit) should be recorded in a liability account i believe while record the purchased supplies in the asset.
What is the effect of performing services on account on the basic accounting equation?
-liabilites, +stockholder's equity
Which part of the accounting equation does a sale on account effect?
by sale on account you mean goods sold to the costumer but the cash was not received immediately. the accounting equation for credit sales is to CR the revenue/sales/turnover in your income statement. DR the receivables account on the balance sheet. after the cash is received. CR the receivables account. DR the cash account.
What is the basic summary device of accounting?
account or accounting equation
What are the effects on the accounting equation from the purchase of a short-term investment?
The purchase of a short-term investment typically results in an increase in assets (cash decreases, and the investment account increases). The accounting equation remains balanced as the decrease in cash is offset by the increase in the investment account, maintaining the equality of assets, liabilities, and equity.
How do withdrawals affect the accounting equation?
Debit Withdraw account and Credit Cash
What purchase of supplies on account is recorded in the?
The amount which is paid on account(credit) should be recorded in a liability account i believe while record the purchased supplies in the asset.
What is the effect of performing services on account on the basic accounting equation?
-liabilites, +stockholder's equity
Which part of the accounting equation does a sale on account effect?
by sale on account you mean goods sold to the costumer but the cash was not received immediately. the accounting equation for credit sales is to CR the revenue/sales/turnover in your income statement. DR the receivables account on the balance sheet. after the cash is received. CR the receivables account. DR the cash account.
What is construction accounting?
Construction accounting is simply methods of accounting and finance applied the construction industry. Lots of factors have to be taken into account including labor costs, supplies, equipment etc.
The equality of the accounting equation can be proven by preparing a?
trial balance
Where do you record a purchase of supplies on account?
This should be recorded in the cash payment journal.
What account is affected in an account journal when you avail of purchase discount for office supplies that was bought on account?
Accounts payable and Cash accounts
In the buyers records the purchase of merchandise on account would it increase or decrease assets expenses liabilities?
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
Is bank account a real account in accounting?
No bank account is a Personal account in Accounting
