Question

give an example of the following (1) increase in assets and increase in liability (2) increase in one asset and decrease in another assets (3) increase and decrease with in capital (4) increase in assets and increase in capital​

Answer 1

1) Assets - Liabilities = Owner's (or Stockholders') Equity. ... For example, when a company borrows money from a bank, the company's assets will increase and its liabilities will increase by the same amount. When a company purchases inventory for cash, one asset will increase and one asset will decrease.

2)Sale of goods for cash.

Increase in cash and decrease in goods.

3)for an asset account, you debit to increase it and credit to decrease it. for a liability account you credit to increase it and debit to decrease it. for a capital account, you credit to increase it and debit to decrease it.

4)A business transaction may increase the asset and on the other hand increases capital

Answer 2

Answer:

I want meaning of increase in liability