USA Decrease or increase of assets?


Joined
Feb 29, 2020
Messages
2
Reaction score
0
Country
United States
The company repays the bank that had lent money to the company. How it effects assets?
 
Ad

Advertisements

Joined
Mar 2, 2020
Messages
2
Reaction score
0
Country
United Kingdom
As you are paying back the bank from the back of a loan, this in essence means you are reducing the liabilities. The only element of assets involved here is the cash at bank (current assets) which would also decrease as your crediting your bank to repay the loan.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top