AccountingHub
A1

Up or down, the rule never changes

Nudge a current asset or liability up or down and watch the sign of its adjustment flip.

Change $1,000
Account

Accounts receivable

Current asset

Change

+$1,000

Cash effect

($1,000)

follows the same rule. An asset going up means cash went somewhere else instead — subtract it. A liability going up means an obligation grew instead of cash going out — add it.

The reverse is just as automatic: an asset going down releases cash, and a liability going down required cash to pay it off.