The following will increase:
Expense and Revenue Accounts
Cost of Goods Sold - Credited
Sales Revenue - Credited
Balance Sheet Accounts
Assets Accounts
Accounts Receivable or Cash depending on payment terms will be debited
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
If the balance in Merchandise Inventory is larger at the end of the year than at the beginning, you would need to adjust for the increase in inventory by debiting the Merchandise Inventory account. This typically reflects an increase in assets. Additionally, you would credit the Cost of Goods Sold account to reduce it, as the higher inventory level indicates that fewer goods were sold than were purchased during the year. This entry aligns the financial statements with the actual inventory levels.
Wut r u talking about
Give me an example for what, the 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?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
If the balance in Merchandise Inventory is larger at the end of the year than at the beginning, you would need to adjust for the increase in inventory by debiting the Merchandise Inventory account. This typically reflects an increase in assets. Additionally, you would credit the Cost of Goods Sold account to reduce it, as the higher inventory level indicates that fewer goods were sold than were purchased during the year. This entry aligns the financial statements with the actual inventory levels.
Wut r u talking about
Give me an example for what, the 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?
Give me an example for what, the transaction would decrease an asset account and decrease the owner's equity account?
Like what type of business? An accounting firm wouldn't have an inventory account. A manufacturer would have an inventory. Think of it as if a company is selling a product as opposed to services they would generally have an inventory account.
A debit would increase and a credit will decrease .
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.
False. Crediting an account by the bank means an increase to that account. When the bank credits an account, it adds funds, such as deposits or interest earned, resulting in a higher balance. Conversely, debiting an account would indicate a decrease.
The transaction would increase an asset account and increase a liability account?
It increases the amount owed, because creditors would be credited