# Is When An Asset Increases In Value

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## 14. When an entity purchases machinery on account the effect

Ask: 14. When an entity purchases machinery on account the effect on the accounting equation is:
A. Increase in assets and increase in liabilities
C. increase in assets and decrease in liabilities
B.Decrease in equity and Increase in liabilities
D. Increase in assets and decrease liabilities ​

D. Increase in asset and decrease liabilities

Explanation:

Here

## As the life of an asset is lengthened, the value

Ask: As the life of an asset is lengthened, the value of that asset increases.

As the life of an asset is lengthened, the value of that asset increases. … As the uncertainty about the expected cash flows increases, the value of an asset increases. An asset with an infinite life (i.e., it is expected to last forever) will have an infinite value.

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## When an entity performs services for cash, how will the

Ask: When an entity performs services for cash, how will the accounting equation be affected?
Select one:
a. Increased equity and decreased assets
b. No effect
c. Increased assets and decreased liabilities
d. Increased equity and increased assets

FABM sub po ito

When an entity performs services for cash, how will the accounting equation be affected?
Select one:
a. Increased equity and decreased assets
b. No effect
c. Increased assets and decreased liabilities
d. Increased equity and increased assets

The answer is letter d. Increased equity and increased assets

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## 1. When an entity/business pays employees for their services, the

Ask: 1. When an entity/business pays employees for their services, the effect is an increase in

a. Expenses

b. Assets

c. Income

d. Liabilities

2. A withdrawal decreases the balance of

a. Owner’s Equity

b. Assets

c. Revenue

d.. Expenses

3. An owner’s withdrawal

a. Increases assets and owner’s equity

b. Increases assets and decreases owner’s equity

c. Decreases assets and owner’s equity

d. Decreases assets and increases owner’s equity

4. Revenues should be recorded when

a. They are earned

b. A contract is signed

c. Cash is received from the customer

5. All of the following affect the owner’s equity account except

a. Original investment

b. Payment of a liability

d. Withdrawal by the owner

6. Decrease in assets may

a. Decrease another asset

b. Decrease expenses

c. Increase capital

d. Decrease liabilities

7. Withdrawals by the proprietor has all the following effects except

a. Reduction of total assets

b. Reduction of owner’s equity

c. Reduction of profit for the period

d. Reduction of cash balance

8. The sale (at cost) of an asset on credit

a. Decreases assets and liabilities

b. Leaves total assets unchanged

c. Increases assets and liabilities

9. The acquisition of an asset on credit

a. Increases assets and owner’s equity

b. Increases assets and liabilities

c. Decreases assets and increases liabilities

d. Leaves total assets unchanged

10. The payment of a liability

a. Decreases assets and owner’s equity

b. Increases assets and decreases liabilities

c. Decreases assets and increases liabilities

d. Decreases assets and liabilities

11. The acquisition of an asset for cash

a. Increases assets and owner’s equity

b. Increases assets and liabilities

c. Decreases assets and increases liabilities

d. Leaves total assets unchanged

12. An investment by the owner in a business increases

a. assets and owner’s equity

b. Assets and liabilities

c. Liabilities and owner’s equity

d. Assets only

13. Which of the following items has no effect on the owner’s equity?

a. Expense

b. Withdrawals

c. Land acquired

d. Revenue

14. A revenue

a. Increases assets and liabilities

b. Increases assets and owner’s equity

c. Increases assets and decreases owner’s equity

d. Leaves total assets unchanged

1.A

2.A

3.D

4.C

5.D

6.A

7.C

8.D

9.C

10.D

11.A

12.A

13D

14.C

A. decrease an asset, decrease owner’s equity
B. increase an asset, increase a liability
C. decrease an asset, decrease a liability
D. increase an asset, decrease another asset
E. increase an asset, increase owner’s equity

e

Step-by-step explanation:

BC he gave u 600,000 BC for thank u to him

E. increase an asset, increase owner’s equity

## When does Asset, Liability and Owner's Equity increase or decrease?

Ask: When does Asset, Liability and Owner’s Equity increase or decrease?

Decrease Because of nothing

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## 12.Paid electricity bills for 7500 in cashA. decrease in assets

Ask: 12.Paid electricity bills for 7500 in cash
A. decrease in assets = decrease and capital
B. increase in assets = increase in liabilities
C. increase in assets = decrease in another form of assets
D. increase in assets= increase capital​

c. increase in assests = decrease in another form of assests

## When the ratio increases that is, when current increase profitability

Ask: When the ratio increases that is, when current increase profitability decreases. Why? assets​

It may either increase or decrease. An increase in the ratio of current assets to total assets will lead to a decline in profitability because current assets are assumed to be less profitable than fixed assets, assuming no change in current liabilities, will increase NWC.

Step-by-step explanation:

Yan po yung sagot..

Ask: a business received 6,000 cash from charge customers to apply on account the effects of the transaction is
a. an increase in an asset and a decrease in a liability
b. an increase in an assets and decrease in an asset
c. an increase in an asset and a decrease in a capital
d. an increase in an asset and an increase in capital
e. an increase in an asset and an increase in revenue ​

Letter C

Explanation:

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## When an asset increases, one of the folowing must occur

Ask: When an asset increases, one of the folowing must occur