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No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit.

Please refer to the link provided for debit and credit rules.

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14y ago

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Is a debit required for a decrease in liabilities?

Yes. Liabilities have credit balances, so a debit will reduce a credit balance.


Is liability credit or debit?

Increase liabilities = credit Decrease labilities = debit


Is a liability account a debit or a credit?

Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.


Is a credit a decrease in assets retained earnings revenue liabilities?

Credit causes the decrease in assets only because assets has debit balance as a normal balance while all other items has credit balance and credit causes the increase in them.


Does a debit decrease liability?

Yes, a debit decrease liability and a credit increase liability. if a debtors/customer make the repayment obligation, it will decrease debtors, meaning decrease in liability.


What does a debit signify a decrease in?

A debit will decrease turnover, liabilities, and equity.


How do you get Trade credit?

what do you mean by liabilities


How does paying a liability with cash affect the accounting equation?

assets decrease; liabilities decrease


Are purchases made on account liabilities?

Yes.Most purchases are on credit and are therefore current liabilities


Do liability accounts increase on the credit side?

Yes, liabilities maintain a "credit" balance, which means they will increase with a credit and decrease with a debit. For example, if you purchase land on credit, the Note Payable is a liability and is increased with the credit. The book transaction may look something like:Land (debit) $50,000Note Payable - Land (credit) $50,000


Are accounts receivable a debit or credit?

Accounts receivable is a debit.Answer:Accounts receivable is an asset and therefore maintains a debit balance. This is an account listing what a person or company owes you, or money that you expect to receive. Since it is an asset (all assets maintain a debit balance) it means to increase the account you debit it and to decrease it (when a payment is made by the customer) you credit it.Assets = debit balance (increase with debit, decrease with credit)Liabilities and Owners Equity = credit balance (increase with a credit, decrease with a debit)(GAAP)


What records a decrease in an asset?

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.It means that some transaction decreases assets and liabilities at the same time. For example, payment of accounts payable results in a decrease in cash and a decrease in accounts payable.