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A transaction that increases capital refers to any financial activity that enhances a company's equity or funding base. This can occur through various means, such as issuing new shares, securing loans, or reinvesting profits. These transactions help strengthen the company's balance sheet, allowing for growth opportunities and improved financial stability. Essentially, they reflect an inflow of resources that can be used for expansion or operational needs.

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1mo ago

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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.


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To request an escrow payment increase for your transaction, you should contact the escrow agent or company handling the transaction and provide a valid reason for the increase. This could include changes in the terms of the agreement, additional costs, or other relevant factors. Be prepared to provide documentation to support your request.


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Capital account increases when capital is introduced, shares are issued, increase in retained profits, etc.


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Escrow can increase in a real estate transaction when additional funds are required to cover unexpected costs or when the buyer requests more time to complete the purchase.


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element of risk is the factor which causes the cost of capital to increase as much the risk as much the cost of capital.