Question

Equipment is a(n)_________ (asset/liability/expense) account. It is reported on the___________ (left/right) side of the accounting equation and is__________ (increased/decreased) when equipment is purchased.

Answer 1

Answer: Asset: Left; Increased

Explanation:

Equipment is an asset account. It is reported on the left side of the accounting equation and is increased when equipment is purchased.

Equipment is a fixed asset because it lasts more than a year in the service of a company. As an asset, it will be reported on the left side of the accounting equation which means that when it increases it is to be debited.

It increases when more equipment is acquired.