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Which describes the process by which assets or equipment decrease in value as an employer pays off the loan used to purchase the equipment?
Wiki User
∙ 13y ago
Depreciation
Wiki User
∙ 13y ago
Anonymous
Asset decrease
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If a company purchase equipment on account will the assets increase decrease or stay the same?
If the equipment is purchased on credit (on account) then the net assets will stay the same as the assets will increase by the same amount as the liabilities
The purchase of equipment on credit is recorded by?
Debit to Equipment and a credit to Accounts Payable
What effect does the purchase of treasury stock have on total stockholders equity increase decrease or none stays the same?
decrease
Which describes a sales tax?
Percentage charged on the purchase of goods.
What will increase asset and decrease liability?
This is a difficult question to answer. I've been going through all transactions I can think of but none that will increase an asset and decrease a liability in the same transaction. Receiving cash payment for an account receivable will increase the asset of cash, but it also decreases the asset of AR. The purchase of equipment or supplies will do increase supplies or equipment but will either decrease the asset of cash or if bought on account will increase liability by increasing an account payable. Remember there's always an equal debit and credit with any transaction. The term debit or credit doesn't indicate which of the accounts are used. You can debit and credit on both sides of the accounting equation in one transaction. Assets increase by receiving money, supplies, property, or equipment, when any of these are increased with a debit then an opposite credit MUST occur. If you receive money for a purchase the asset of Cash increases, but then so does the Owners Equity account of Revenue. (this doesn't have anything to do with liabilities.) A liability is something your company owes, to decrease a liability a company makes a pay out in some form (usually cash), this will also decrease your assets (not increase).
The purchase of office equipment on an account would increase assets and decrease liablities?
it depends...are you replacing old equipment? if so then no if by equipment you mean chairs etc.
If a company purchase equipment on account will the assets increase decrease or stay the same?
If the equipment is purchased on credit (on account) then the net assets will stay the same as the assets will increase by the same amount as the liabilities
Is purchase for resale is an expenses?
No. Purchases for resale is treated as current asset.Accounting entry:Step 1: Purchase of equipments for resale in cashDebit Equipments (Increase in asset)Credit Cash (Decrease in asset)Step 2: Resale of equipments in cashDebit Cash (Increase in asset)Credit Equipment (Decrease in asset)
What term describes the full purchase of company stock?
A straight purchase describes the full purchase of company stock.
Where can one purchase tank cleaning equipment for fish?
You can purchase tank cleaning equipment for fish online from the Petco website. Alternatively, you can also purchase this equipment online from Petsmart.
Why can't all the balance of payments accounts be in surplus?
The balance of payments accounts cannot be in surplus because there is always a balance in economics. For example, if you used cash assets to purchase equipment, the equipment account will increase but the cash assets account will decrease.
Who pays for the paint when you get your bedroom painted does the painter or the employer?
Employer. The painter does the work, you purchase the paint.
What items of expenditure will be capital - purchase of kitchens purchase of kitchen equipment placing an advertisement in the local newspaper for staff?
Purchase of kitchen equipment.
Where can one purchase ProForm fitness equipment?
One can purchase ProForm fitness equipment at various retailers. One can purchase ProForm fitness equipment at Sears, Target, or at the ProForm official website.
Where can packing equipment be purchased?
There are many places one can purchase packing equipment. One can purchase them online from Actionpaq or Packaging Equipment Sales or Can-Am Packaging Equipment or Used Blueberry Equipment.com .
Where can one purchase equipment trailers?
You may purchase equipment trailers from many websites such as worldofmowers or equipmenttraderonline. Alternatively you may wish to consider using the website commercialtruck trader to purchase an equipment trailer.
Where can rigging equipment be bought?
You can purchase rigging equipment online from the Rigging Warehouse website. Alternatively, you can purchase rigging equipment online from the Hanes Supply website.
