BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -To increase an asset account balance you need to debit the account. Unearned Revenue is a liability account. A debit will decrease a liability account. You want to credit a liability account in order to increase it.

Detailed explanation-2: -Debits increase asset or expense accounts and decrease liability, revenue or equity accounts. Credits do the reverse.

Detailed explanation-3: -Debits increase asset and expense accounts. Debits decrease liability, equity, and revenue accounts.

Detailed explanation-4: -The bottom line is, service revenue is not reported as a debit but as credit, because it represents the income of a company during an accounting period and this income has an impact on the company’s equity. Therefore, as a company generates revenue, its equity increases.

Detailed explanation-5: -A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.