A debit increases the balance in all of the following accounts except for which one?
To determine which account is not affected by a debit, we must first understand the nature of debit and credit entries in accounting.
In accounting, debits and credits are used to record financial transactions. Debits are used to increase the balance in certain types of accounts, while credits are used to decrease the balance in those accounts. The specific accounts affected by a debit or credit entry depend on whether they are considered asset, liability, equity, revenue, or expense accounts.
Here is a breakdown of the typical effects of debits and credits on these different types of accounts:
1. Asset Accounts: Debits increase the balance, while credits decrease the balance.
2. Liability Accounts: Debits decrease the balance, while credits increase the balance.
3. Equity Accounts: Debits decrease the balance, while credits increase the balance.
4. Revenue Accounts: Debits decrease the balance, while credits increase the balance.
5. Expense Accounts: Debits increase the balance, while credits decrease the balance.
Now, returning to the original question, we are looking for the account that is NOT affected by a debit. From the explanations above, we can see that debits increase the balance in asset accounts, such as cash, inventory, or accounts receivable.
Therefore, the account that is NOT affected by a debit is an account from one of the other categories: liability, equity, revenue, or expense.
In conclusion, a debit does not increase the balance in an equity, revenue, or expense account.