Which of the following applications of the rules of debit and credit is true?
A) decrease Prepaid Insurance with a credit and the normal balance is a credit
B) increase Accounts Payable with a credit and the normal balance is a debit
C) increase Equipment with a debit and the normal balance is a debit
D) decrease Cash with a debit and the normal balance is a credit

Question

Quizplus · Accepted Answer

The rules of debit and credit state that increases in assets are recorded with debits and decreases with credits. Therefore, when equipment is purchased, it is recorded with a debit. Additionally, equipment is an asset account and its normal balance is a debit.

Which of the Following Applications of the Rules of Debit