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In finanacial accounting what business transaction will increase capital and decrease capital at the same time?
hi im suppose to help everybody in wikianswers but that question i don't get sooo sorry!! if you need any help go to Google or wikipedia.com and maybe you can find some resources there sorry!!
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A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
If a business paid 7000 to a creditor in payment of an amount owed. the effect of the transaction on the accounting equation was to?
When the business pays $7,000 to a creditor, its liabilities decrease by $7,000, reflecting a reduction in the amount owed. Simultaneously, the business's cash or bank account (an asset) decreases by the same amount. This transaction maintains the accounting equation (Assets = Liabilities + Equity) because both sides decrease equally, leaving the overall equation balanced.
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
How is the accounting equation affected when a business pays cash for rent?
When a business pays cash for rent, the accounting equation (Assets = Liabilities + Equity) is affected by a decrease in assets and an increase in expenses. Specifically, cash (an asset) decreases while rent expense (which ultimately reduces equity) increases. This transaction does not affect liabilities, but it decreases the owner's equity due to the expense incurred.
What is the accounting journal entry to record the purchase price of a business?
The accounting journal entry to record the purchase price of a business is debit. The debit will decrease the assets reflecting the purchase price.
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
If a business paid 7000 to a creditor in payment of an amount owed. the effect of the transaction on the accounting equation was to?
When the business pays $7,000 to a creditor, its liabilities decrease by $7,000, reflecting a reduction in the amount owed. Simultaneously, the business's cash or bank account (an asset) decreases by the same amount. This transaction maintains the accounting equation (Assets = Liabilities + Equity) because both sides decrease equally, leaving the overall equation balanced.
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
How is the accounting equation affected when a business pays cash for rent?
When a business pays cash for rent, the accounting equation (Assets = Liabilities + Equity) is affected by a decrease in assets and an increase in expenses. Specifically, cash (an asset) decreases while rent expense (which ultimately reduces equity) increases. This transaction does not affect liabilities, but it decreases the owner's equity due to the expense incurred.
What is the accounting journal entry to record the purchase price of a business?
The accounting journal entry to record the purchase price of a business is debit. The debit will decrease the assets reflecting the purchase price.
What transaction would decrease an asset account and decrease the owner's equity account?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What transaction would decrease an asset account and decrease the owner and equity account?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What transaction would decrease an asset account and decrease the owner equity account.?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
What is the effect of this transaction on individual asset accounts individual liability accounts and the Owner's Equi?
The effect of a transaction on individual asset accounts generally results in an increase or decrease in the value of specific assets, such as cash or inventory. Liability accounts may also be affected, either increasing if the transaction involves borrowing or decreasing if debts are paid off. Owner's equity is impacted based on the nature of the transaction; for example, revenues increase equity while expenses decrease it. Overall, the transaction reflects changes in the accounting equation: Assets = Liabilities + Owner's Equity.
Is purchasing office supplies a debit or credit in accounting?
In accounting, purchasing office supplies is recorded as a debit to the Office Supplies expense account, reflecting an increase in expenses. Simultaneously, it results in a credit to the Cash or Accounts Payable account, indicating a decrease in assets or an increase in liabilities, respectively. This transaction adheres to the double-entry accounting system, ensuring that the accounting equation remains balanced.
How do you decrease an asset account?
To decrease an asset account, you can either record a credit entry or reduce the asset's value through a transaction. For instance, selling the asset, writing it off, or recognizing depreciation will decrease the asset account balance. In double-entry accounting, the corresponding entry would typically increase a liability or equity account or decrease another asset account.
Which transaction would increase and decrease an assat?
A debit would increase and a credit will decrease .
