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When two asset accounts are changed in a transaction there must be an increase and a decrease?
Wiki User
∙ 10y ago
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.
Wiki User
∙ 10y ago
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Do decrease in accounts receiveable decrease sales?
Generally, those two accounts tend to move in the same direction. It is typically driven by Sales, though. If Sales in a year increase, it would be expected that Accounts Receivable (A/R) would increase as well because typically a proportion of Sales are paid in cash, while another proportion is charged to credit. If a company's Sales are generally made up by 1/2 cash and 1/2 credit, if Sales increased substantially in the year, we would expect A/R to increase as well. If, however, Sales in the year plummeted, we would also expect A/R to decrease from the previous year. (This is also assuming the company has not changed its policies regarding how it extends credit to customers, and is collecting its receivables in a timely manner.)
How do you use account payble and receivable?
These are basic accounts. Accounts Payable is used by one company to record the amount owed to it by another company or person. Accounts payable is a liability account. Say your company purchases inventory from another on account, your company records what it owes as a liability in accounts payable. AP increase with a credit and decrease with a debit. The opposite is true with Accounts Receivable. Your company records money owed to it by another company or person in AR. AR is a asset account and therefore increase with a debit and decreases with a credit. How to use these accounts are pretty simple and straight forward for the basics. Let's say we are company A, we purchase inventory from Company B on account. We use AP - Company B and record the purchase, we credit the amount to that account. So say we purchased Inventory in the amount of $500 on account our first recording would be: Inventory (dr) $500 AP - Comp B (cr) $500 No cash has changed hands at this point so cash does not figure into this transaction. Now AR, say we sale inventory to Company B on account for $500, The transaction is as: AR - comp B (dr) $500 Sales (cr) $500 Again not cash has changed hands at this time. Most company's use a subsidiary ledger to record individual accounts, then a general ledger to show a running total of all AP and AR accounts.
What is the difference between transaction and event?
in transition the states are changed from one state to another but in event the signals are changed or trigered with respect to that signal.
What are characteristics of final account?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
Types of recurring deposit?
Recurring deposit can be classified into two types: 1. Fixed Recurring Deposit: In this the installment amount remains fixed for the entire tenor of RD from the time of booking. 2. Flexible Recurring Deposit: In the installment amount can be changed during any part of the tenor as and when the customer decides to increase or decrease his installment amount.
How is the strength of hydrogen peroxide changed?
Water is added to decrease the Conc^ or the water is evaporated of to increase the Conc^
What happens to power if piston diameter is changed?
If the size of the piston is increased, the power will increase. If it is decreased, the power will decrease.
Do decrease in accounts receiveable decrease sales?
Generally, those two accounts tend to move in the same direction. It is typically driven by Sales, though. If Sales in a year increase, it would be expected that Accounts Receivable (A/R) would increase as well because typically a proportion of Sales are paid in cash, while another proportion is charged to credit. If a company's Sales are generally made up by 1/2 cash and 1/2 credit, if Sales increased substantially in the year, we would expect A/R to increase as well. If, however, Sales in the year plummeted, we would also expect A/R to decrease from the previous year. (This is also assuming the company has not changed its policies regarding how it extends credit to customers, and is collecting its receivables in a timely manner.)
Does a crumpled piece of aluminum foil into a ball would the mass weight volume and density increase or decrease from what it was?
All that has changed is the shape.
How do you use account payble and receivable?
These are basic accounts. Accounts Payable is used by one company to record the amount owed to it by another company or person. Accounts payable is a liability account. Say your company purchases inventory from another on account, your company records what it owes as a liability in accounts payable. AP increase with a credit and decrease with a debit. The opposite is true with Accounts Receivable. Your company records money owed to it by another company or person in AR. AR is a asset account and therefore increase with a debit and decreases with a credit. How to use these accounts are pretty simple and straight forward for the basics. Let's say we are company A, we purchase inventory from Company B on account. We use AP - Company B and record the purchase, we credit the amount to that account. So say we purchased Inventory in the amount of $500 on account our first recording would be: Inventory (dr) $500 AP - Comp B (cr) $500 No cash has changed hands at this point so cash does not figure into this transaction. Now AR, say we sale inventory to Company B on account for $500, The transaction is as: AR - comp B (dr) $500 Sales (cr) $500 Again not cash has changed hands at this time. Most company's use a subsidiary ledger to record individual accounts, then a general ledger to show a running total of all AP and AR accounts.
Can terminal velocity be changed?
Yes, if the falling object changes its aerodynamic profile, it can reduce or increase drag. Drag causes the terminal velocity to decrease.
In a chemical change what happens to molecules?
In physical change the moleculer distance is changed(increase/decrease) but the moleculer structure remains unalter.
What is a lock in social studies?
System used on the canals to increase and decrease water levels as the elevation of the terrain around the canal changed.
Does the speed increase or decrease with the attraction between particles when changed from liquid to gas?
Yes, the speed increases when a liquid changes to a gas, And the attraction between particles also decreases. :) -Anouymous
How do you predict shifts in equilibrium?
If you increase the amount of a substance, the equilibrium shifts away, if you decrease or get rid of something the equilibrium shifts to it, and if the substance that is changed is on both sides then the equilibrium doesn't shift.
What are the characteristics of final accounts?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
Why are chips on credit cards used?
They increase the security of transactions, making it impossible to forge or clone a credit card (as you can with the magnetic stripes). They use an encryption mechanism and a unique key code assigned only to that card and which cannot be changed to generate a transaction code. This transaction code can only be correctly encrypted by the chip on that one card and contains information unique to that specific transaction. The bank can verify the validity of this transaction code, confirming the use of a valid (not forged or cloned) card at the point of sale.
