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To decrease a liability account, you can either pay off the debt or make a payment towards the amount owed. This reduces the amount of money that you owe, resulting in a decrease in the liability account.

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6mo ago

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Related Questions

How Do You Decrease A Liability Account?

By paying the liability in part or in full.


Does credit from supplier decrease account payable account?

No, it increases the liability account.


What will decrease a liability and increase a liability?

account payable paid-off by arranging a new loan.


Decrease an asset account and decrease a liability account?

if you have a asset and you sale it and then money which you get pay as a liability so decreas in asset and decreas in liability occurs.


Do you decrease a liability account with credit?

No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.


What will cause a decrease in one liability and an increase in another liability?

Paying off one loan by getting another loan will decrease one liability and increase another.


Which one of the following account groups will decrease with a debit?

In accounting, asset accounts, expense accounts, and dividend accounts typically increase with a debit and decrease with a credit. Conversely, liability accounts, equity accounts, and revenue accounts decrease with a debit. Therefore, liability accounts are the group that will decrease with a debit.


What transaction would cause decrease and increase liability account?

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.


Does debits increase asset and increase liabilities?

Debits increase assets but decrease liabilities. In accounting, when you debit an asset account, it signifies an increase in that asset. Conversely, when you debit a liability account, it indicates a decrease in that liability. Therefore, debits do not increase liabilities; they have the opposite effect.


What records a decrease in liability?

Records of decrease in a liability is Debit


What an example of a decrease in an asset and a decrease in a liability?

Paying A/P: Decrease in Cash (Asset), Decrease in A/P (Liability)


What would decrease liability?

Debit balance would decrease the liability as credit balance increases the liability.