Equipment is classified as which type of account, and what is its normal increase side?

• A. Expense, Dr.
• B. Asset, Cr
• C. Asset, Dr
• D. Liability, Cr

Answer: (C)

Assets are increased on the left side (debits) in double-entry accounting. Equipment is a long-term asset, part of property, plant, and equipment. When you acquire equipment, you debit the Equipment account to show the increase and credit the source of funds (like Cash or Accounts Payable). Because asset accounts normally have a debit balance, the increase side for Equipment is a debit. The other options don’t fit because an equipment purchase is not an expense, and assets do not increase on the credit side nor are they liabilities.