Here's your cheat sheet Debits and credits can be a bit confusing. Sometimes a debit causes an account to increase, and other times it leads to a decrease. Credits are equally flexible.

A few theories exist on the origin of the abbreviations for debit (DR) and credit (CR) in accounting. Both have Latin roots and can appear on a company's balance sheet.

A debit is half of a double-entry accounting system, in which every debit is offset by a credit. A debit entry results in either more assets or fewer liabilities on a company’s balance sheet.

Each account balance that needs an adjustment will have a debit or credit amount listed in this section. The sum of all debits and credits in this section should also equal.

Debits and credits are a fundamental concept in accounting, but they have different meanings when applied to balance sheet and income statement accounts. For the sake of this analysis, a credit is ...

Double-entry accounting is a bookkeeping system that requires two entries — one debit and one credit — for every transaction. Your books are balanced when debits and credits zero each other out.

Debits and credits will always balance, or equal each other; this ensures that the company's balance sheet and income statement are always in balance as well, accurately reflecting the income ...

In accounting, every financial transaction is recorded by two entries on the company's books. These two transactions are called a "debit" and a "credit," and together, they form the foundation of ...