Accounting is the practice of recording a company’s financial transactions. To do this, it relies on two fundamental records: credit and debit in accounting. The ladder, a debit, is a journal entry ...

Credit means different things depending on its context. For example, the amount available to borrow from a vendor. A credit in accounting is a journal entry with the ability to decrease an asset or ...

The method business accountants use to record transactions of business activity into the general ledger requires that each transaction posted involves at least one debit and one credit. In standard ...

While it seems contradictory that assets and expenses can both have debit balances, the explanation is quite logical when one understands the basics of accounting. Modern-day accounting theory is ...

“Don’t mention debits and credits in polite company,” my mother reminds me. But what if debits and credits provide surprising insights? Ignore mother’s advice. After more than a decade of ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...