BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Equipment is an asset and a debit will increase the account balance. You would have to CREDIT Equipment in order to reduce its balance. A credit will decrease this asset’s account balance. Unearned Revenue is a liability account and its balance will be decreased with a debit.

Detailed explanation-2: -In the accounting record, the checking account is increased with a debit and the savings account is decreased with a credit. Note that these terms are exactly opposite of how the bank will refer to them! Increases and decreases of the same account type are common with assets. An example is a cash equipment purchase.

Detailed explanation-3: -The equipment account shows a debit balance in the business organization. The equipment is regarded as the fixed assets of the business organization and it is used for the proper business operations.

Detailed explanation-4: -Accounts decreased by debits A debit will decrease the following types of accounts: Liabilities (Notes Payable, Accounts Payable, Interest Payable, etc.) Stockholders’ Equity (Common Stock, Retained Earnings)