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When you use cash to pay down account payable how does it affect the accounting equation?
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE
Are dividends owner's equity or asset or liability or revenues?
If your divident is the result of your own investment, it is an asset. Divident payable is a liability.
In what does a debit signify a decrease?
A debit signifies a decrease in any of 3 instances: 1. A liability: such as Accounts Payable 2. Equity: such as Capital Draw. 3. Revenue: a debit to a revenue account decreases it.
Is The capital account is the owners liability account?
yes it is because it is used to summarize the owner's equity.
Prepare stockholders' equity section of a balance sheet?
amount subscribed = 2,500,000amount paid = 700.000retained earning = (1,536,047.78)cash in ( accounts payable ) = 6,000,000prepared me the liability and stockholder's equity for this
Would Accounts payable go under statement of changes in owner's equity in a financial statement?
No. Accounts payable is a liability account, which is used in the balance sheet.
Is drawings an asset equity or liability account?
equity
Are dividends payable an expense or owner equity?
Dividend payable are from current year's net income portion it is liability of business as soon as dividend declared.
When you use cash to pay down account payable how does it affect the accounting equation?
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE
Are dividends owner's equity or asset or liability or revenues?
If your divident is the result of your own investment, it is an asset. Divident payable is a liability.
Is stockholders equity an asset account?
Stockholder equity is a liability account as it is refundable by business at time of liquidation.
When an accounts payable account is paid in cash the owner's equity in the business decreases True or False?
False. Payment of an accounts payable reduces cash and reduces accounts payable. Equity is not affected.
Accrued rent expense is a liability?
Accrued rent expense is classified as an Expense. It's not classified as a liability. Expenses are paid out of "Revenue" and they affect "Retained Earnings". When you do a Trial Balance before closing out your accounts, Expenses are actually listed with Assets, because all "Expenses" contain a debit balance.There is only one reason an expense would be listed as a liability and that is if you post the transaction before paying it and then the account "Expense Payable" is used and is a liability as it is a "Payable" and actually is not listed with the term "expense" in it. For example if you have Rent Expense, then the two accounts used are Rent Expense and Rent Payable. Notice the "liability" account is actually titled "rent payable" not "rent expense".The term accrued is merely the term used in Accrual Accounting, which simply means that all transactions are recorded as they occur or "accrue" as opposed to cash basis accounting where transactions are recorded only when cash is paid out or received.In actuality if you are trying to classify your accounts, such as the question, classify the following accounts as either an Asset, Liability or Owners Equity Account, Expenses will be classified as an Owners Equity Account as they affect Retained Earnings, which in turn affects Owners Equity (stockholders equity).
In what does a debit signify a decrease?
A debit signifies a decrease in any of 3 instances: 1. A liability: such as Accounts Payable 2. Equity: such as Capital Draw. 3. Revenue: a debit to a revenue account decreases it.
Is The capital account is the owners liability account?
yes it is because it is used to summarize the owner's equity.
Prepare stockholders' equity section of a balance sheet?
amount subscribed = 2,500,000amount paid = 700.000retained earning = (1,536,047.78)cash in ( accounts payable ) = 6,000,000prepared me the liability and stockholder's equity for this
What is the journal entry for accounts payable?
I think in this question something is missing : The Expense A/c or Service A/c Dr from which regards we have liability to pay and Cr. the Account payable A/c. For example : We purchased goods from BM Bros. on credit for Rs. 10000. The entry would be passed: BM Bros A/c Dr. To Accounts Payable A/c Here liability is increase and equity is decrease because we have to pay the outstanding amount, on the payment the entry will be: A/c Payable Dr. To Cash/ Bank A/c
