In your opinion, why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them?
Assets are debit accounts and liabilities are credit accounts. Based on the accounting equation Assets = Liabilities + Owner's Equity. An increase in assets increases the left (debit side) of the accounting equation and increases owners equity. [ An increase in liabilities decreases owners equity. ]
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Asked 3/18/2012 9:33:56 PM
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