BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Debits always appear on the left side of an accounting ledger. Debits increase asset and expense accounts and decrease liability, equity, and revenue accounts.

Detailed explanation-2: -In effect, a debit increases an expense account in the income statement, and a credit decreases it. Liabilities, revenues, and equity accounts have natural credit balances.

Detailed explanation-3: -Since revenues cause owner’s equity to increase, the revenue accounts will have credit balances. Since expenses cause owner’s equity to decrease, expense accounts will have debit balances.

Detailed explanation-4: -You didn’t go into business to become an accountant, so it’s understandable that you’d have questions like: “are expenses debit or credit?” In short, because expenses cause stockholder equity to decrease, they are an accounting debit.

Detailed explanation-5: -A debit records financial information on the left side of each account. A credit records financial information on the right side of an account. One side of each account will increase and the other side will decrease.