# Debits and Credits

*Accounting & Reporting — Finicade finance glossary*

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.

**Also known as:** debit, credit, DR CR

**Related terms:** [Double-Entry Bookkeeping](https://finicade.com/glossary/double-entry-bookkeeping), [Journal Entry](https://finicade.com/glossary/journal-entry), [General Ledger](https://finicade.com/glossary/general-ledger), [Trial Balance](https://finicade.com/glossary/trial-balance), [Balance Sheet](https://finicade.com/glossary/balance-sheet)

**Taught in:** Money Basics — Debt: Interest Working Against You

Source: https://finicade.com/glossary/debits-and-credits