0
Add your answer:
Earn +20 pts
What decreases an asset account credt or debit?
Assets has debit balance as normal balance so debit balance increases it while credit balance decreases it.
Why the ballance of the assets is always on debit side in T account?
Assets maintain a Debit balance and therefore any asset with a positive balance will be listed on the "debit" side of the account. The credit side of the T account for assets is used only to DECREASE that asset. For example Cash is an asset account and it's balance is listed on the Debit side, now your company spends "x" amount of dollars, that entry will be listed on the Credit side to decrease the cash account. If at anytime your Debit side of the asset is less than your Credit side it means that you have a LOSS. For example, you have $1,000 in your cash account and you record $1500 (credit) to the account. Your account will be listed as "OVERDRAWN" and will have a Credit Balance of $500, this of course is not acceptable. A company can never have a higher Credit balance than a Debit balance in their assets.
What account have normal debit balance?
all fixed assets a/c have a debit balance normally
The balance of a furniture and equipment account a debit or credit?
It is a debit balance. Furniture and Equipment accounts are included in an individuals assets and asset accounts have debit values.
Is a liability account a debit or a credit?
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
What decreases an asset account credt or debit?
Assets has debit balance as normal balance so debit balance increases it while credit balance decreases it.
Why the ballance of the assets is always on debit side in T account?
Assets maintain a Debit balance and therefore any asset with a positive balance will be listed on the "debit" side of the account. The credit side of the T account for assets is used only to DECREASE that asset. For example Cash is an asset account and it's balance is listed on the Debit side, now your company spends "x" amount of dollars, that entry will be listed on the Credit side to decrease the cash account. If at anytime your Debit side of the asset is less than your Credit side it means that you have a LOSS. For example, you have $1,000 in your cash account and you record $1500 (credit) to the account. Your account will be listed as "OVERDRAWN" and will have a Credit Balance of $500, this of course is not acceptable. A company can never have a higher Credit balance than a Debit balance in their assets.
What account have normal debit balance?
all fixed assets a/c have a debit balance normally
Why increasing a liability account with a credit when increasing an asset account with a debit?
Liability has credit balance as normal balance so credit joins credit and increases it while assets has debit balance as normal balance so debit and credit cannot join together like plus plus is equals to plus.
The balance of a furniture and equipment account a debit or credit?
It is a debit balance. Furniture and Equipment accounts are included in an individuals assets and asset accounts have debit values.
Is a liability account a debit or a credit?
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
What is the normal balance of an account in the accounts payable subsidiary ledger?
Accounts receivables has debit balance as normal balance of account and shown in current assets in balance sheet.
Accumulated depreciation debit or credit?
Accumulated depreciation is a contra account for specific fixed asset so fixed assets has debit balance as normal balance so accumulated depreciation has credit balance as default balance.
Is the normal balance side of a liability account the debit side?
Normal balance of all liabilities accounts are credit side while debit balance is of all expenses and assets.
Which account represents a debit balance on a ledger account?
assets have debit balances.
Is investment credit or debit in trial balance?
It has debit balance as investment is an asset and all assets have debit balance .
Are accounts receivable a debit or credit?
Accounts receivable is a debit.Answer:Accounts receivable is an asset and therefore maintains a debit balance. This is an account listing what a person or company owes you, or money that you expect to receive. Since it is an asset (all assets maintain a debit balance) it means to increase the account you debit it and to decrease it (when a payment is made by the customer) you credit it.Assets = debit balance (increase with debit, decrease with credit)Liabilities and Owners Equity = credit balance (increase with a credit, decrease with a debit)(GAAP)
