Which accounts typically increase with a debit?

• A. Assets and Expenses
• B. Liabilities and Equity
• C. Revenue and Liabilities
• D. Equity and Revenue

Answer: (A)

Debits increase asset and expense accounts because these accounts normally carry a debit balance. When you acquire resources or incur costs, you record a debit to the asset or the expense to reflect the growth in that account. For example, buying supplies or equipment raises assets, and paying for a service or rent raises expenses; in both cases the amount is entered on the left side (debit) of the T-account, while the other side of the transaction is recorded in a different account (often cash or accounts payable).

In contrast, liabilities, equity, and revenue typically have credit balances. When these accounts grow, you record credits, not debits. That’s why they don’t fit the idea of “increase with a debit.” For instance, taking out a loan increases a liability with a credit, and earning revenue increases equity (through retained earnings) with a credit, not a debit.

So the accounts that typically increase with a debit are assets and expenses.