A transaction that will definitely result to a decrease in an asset and a decrease in a liability is a payment of an accounts payable. A transaction that will result to a decrease in one asset and an increase in another asset is the collection of an accounts receivable from a customer. A transaction that will result to a decrease in one liability and an increase in another liability definitely occurs when a conversion of an accounts payable to notes payable.
Work Step by Step
Notably, both accounts payables and receivables are crucial accounts for a business since they both help a business to notice how much the business needs for the purposes of pay offs and how much the business would receive.