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What is the effect of the adjusting entry for Depreciation expense?
The entry increases total assets and increases total expenses
What account increases an asset and increases equity?
A capital contribution or an owner's equity account increases both an asset and equity. When an owner invests cash or other assets into the business, the cash or asset increases the company's assets, while the corresponding increase in equity reflects the owner's stake in the business. This transaction demonstrates the relationship between assets and equity, as both rise simultaneously.
Is it true When cash is paid for an expense is assets increase owner's equity increases?
no
When account receivabes is collected cash the totl assets of the business increases?
Accounts receivable is also part of assets of business and cash as well so there is no difference on overall assets of business.
How does rendering of services for cash affect the accounting equation?
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
What is the effect on accounting equation if assets increases?
accounting equation assets = liabilities + capital so if assets increases either liability or capital will increase for this purpose 1. assets means both long term assets and short term assets 2. capital means owners equity 3. liability means outsliders liability
What is the effect of the adjusting entry for Depreciation expense?
The entry increases total assets and increases total expenses
Intangible asset increases by credit?
Intangible assets are assets like other assets and have debit balance so these are also increased by debit only and reduce by credit.
What is a post guard?
Better known as a bollard, a post guard (or guard post) is a short vertical post meant to prevent access and protect assets.
Is it true When cash is paid for an expense is assets increase owner's equity increases?
no
When account receivabes is collected cash the totl assets of the business increases?
Accounts receivable is also part of assets of business and cash as well so there is no difference on overall assets of business.
How are assets and liability treated?
If asset is increased it is Debited in Ledger and if liability increases it is credited. Accounts Receivables are treated as assets. Both Assets and Liabilities are shown in face of Statement of Financial Position.
How does rendering of services for cash affect the accounting equation?
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
How do you begin posting to the ledger accounts?
I would post first all assets
Can you explain how transactions are debited or credited in accounting?
In accounting, transactions are debited or credited based on the accounting equation, which states that assets must equal liabilities plus equity. When a transaction increases assets or expenses, it is debited. When a transaction increases liabilities, equity, or revenue, it is credited.
When an owner invests assets in the business the capital account increases due to revenue being earned?
yes it does
Is property and equipment credit or debit?
property and equipment should be debited if they increases because both are assets
