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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.
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?
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.
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?
Which transaction would increase and decrease an assat?
A debit would increase and a credit will decrease .
Transaction that will decrese an asset anf decrease a liability?
Payment to the creditors Creditors Decrease Bank balance decrease
How does paying a liability with cash affect the accounting equation?
assets decrease; liabilities decrease
Are revenue accounts increased with credits?
Yes, revenue accounts are increased with credits. In accounting, revenues are recorded as credits in the double-entry bookkeeping system, which reflects an increase in the overall equity of the business. Conversely, when revenues decrease, they are recorded as debits. This aligns with the basic accounting principle that credits increase revenue and debits decrease it.
What is the difference between debit and credit in accounting?
In accounting, debit and credit are two sides of the same transaction. Debit represents money going out or an increase in assets, while credit represents money coming in or a decrease in assets. Debits are recorded on the left side of an account, while credits are recorded on the right side.
