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Debits, Credits, and Retained Earnings

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Below is a list of accounts and whether the account is being debited or credited. For each item, indicate whether the account balance will be increased or decreased.

ACCOUNT BALANCE
Account Debit or Credit Increased or Decreased?
0. Salary Expense Debit Increased
1. Sales Revenue Credit
2. Retained Earnings Debit
3. Insurance Expense Credit
4. Dividends Credit
5. Interest Revenue Debit
6. Advertising Expense Debit
7. Rent Revenue Credit

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Solution Summary

The solution explains whether the account balance will be increased or decreased given the transaction.

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For assets, dividends and expenses debit increases the balance and credit decreases
For liabilities, ...

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