0
What else can I help you with?
Can a increase in one asset increase another asset?
Since both sides of the balance sheet (the Assets side and the Liabilities/Owners' Equity side) must have equal totals, an entry showing an increase in an asset must be balanced with an corresponding increase in a liability or a decrease in another asset.Generally, an increase in an asset (e.g., the acquisition of a new asset) means that either we have decreased another asset (e.g., cash) to pay for it, or we have incurred debt to acquire the asset (thereby increasing our liabilities).1) increase in one asset - corresponding decrease in another asset (e.g. we pay cash for new asset)2) increase in one asset - corresponding increase in a liability (e.g., we acquire an asset on credit)
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.
Does promotion increase prices?
yes..when someone promoted it means she or he will be given big salary more than to his old position..so,in this case its another liabilities to get this liabilities company should increase the prices of theirr product for additional asset..
Why population increase and decrease?
Populations increase and decrease because people leave one country (emigration) and enter another (immigration). A rise or fall in either the birth rate or death rate in a country can also cause populations to increase or decrease.
What will increase one asset and decrease another asset?
There are many transactions that do this. If you receive a payment on account from a customer, you increase Cash and decrease Accounts Receiveable. If you pay for raw materials or merchandise with cash, you increase Inventory and decrease Cash. You can also increase Fixed Assets and decrease Cash if you buy an asset with cash. Moving product from Raw Materials to Finished Goods Inventory is another example. Moving excess cash to an investment account does the same thing. When you make a sale, you decrease Inventory and increase Accounts Receivable.
If a company uses 1430 of its cash to purchase supplies the effect on the accounting equation would be?
When a company uses $1,430 of its cash to purchase supplies, the accounting equation (Assets = Liabilities + Equity) is affected by a decrease in cash (an asset) and an increase in supplies (also an asset). The overall total of assets remains unchanged since one asset is exchanged for another. Therefore, there is no impact on liabilities or equity.
What Entry will increases liability and revenue?
There is no way to increase Revenue and Liabilities in a single transaction. Another reason for this is the accounting equation.Assets = Liabilities + Owners EquityIn double entry accounting there must be a debit and a credit that equals. You want to "increase" liabilities and revenue with a single entry, this cannot be done because and increase in liabilities relies on a credit entry as does an increase in revenue.Assets maintain a Debit Balance, meaning they increase with a debit.Liabilities maintain a Credit Balance, meaning the increase with a credit.Owners Equity maintains a Credit Balance, increasing with credit.Revenue is an OWNERS EQUITY ACCOUNT and therefore increases with a credit.Say you desired to increase Liabilities $500 and Revenue $500 in a single entry, you couldn't because you'd need to "credit" liabilities $500 and "credit" revenue $500, but you MUST have a "debit" that equals the same amount of credits.
What transactions increase in one owner's equity equals decrease in another owner's equity?
Profits would increase owners equity, loss and drawing would decrease an owners equity.
Can a transaction that causes an increase in an asset also cause a decrease in another asset?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
How do you increase and decrease gravity?
To increase gravity, you would need to increase the mass of the object or planet exerting the gravitational force. To decrease gravity, you would need to reduce the mass of the object or planet exerting the gravitational force. Another way to decrease gravity is by increasing the distance between the objects experiencing the gravitational force.
Why does my refund decrease when I enter another W2?
When you enter another W-2, it may increase your total income, which can push you into a higher tax bracket. This can result in a higher tax liability and a decrease in your refund amount.
Would you expect the size of the temperate zone to increase if the Earth went through another Ice Age?
decrease
