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Accounting & Reporting

Debits and Credits

Also called: debit, credit, DR CR

Debits and credits are the two sides of every accounting entry, and they don't mean good and bad. A debit increases assets and expenses; a credit increases liabilities, equity and revenue. The confusion for most people comes from bank statements, which are written from the bank's perspective — your deposit is a credit to them because they now owe you the money.

Where this is taught

Definitions are the trailer. These free levels turn Debits and Credits into something you play — one bite-size lesson, with worked examples, a quiz and XP.

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