What Are Debits & Credits in Accounting?
Debits and credits make up the double entry system of accounting used since the 1400s. Every transaction has two parts, a debit and a credit, and in accounting, they must be equal. Debits increase assets and decrease liabilities as well as equity. Credits increase equity and liabilities and decrease assets.
Related Questions
- Is BudgetMagic a general ledger accounting system with debits and credits, or is it simply a valuable financial tool which enables me to prepare my budget and stay on it?
- Accounting Question - which accounts are debits or credits? Can you add them up to find the trial balance?
- What Are Debits & Credits in Accounting?
