How about some light-hearted fare today? The words “debits” and “credits” can be used in many different parts of speech. Here is a table I created with examples using “debit.” Part of Speech Example Noun (subject) The debit raised the balance in the cash account. Noun (object) The liability account needs more debits. Noun (object […]
Tag: debits and credits
Debits and credits: first thing you need to know
In the world of financial accounting, one bookkeeping transaction has two effects. We call these two effects “debits and credits.” This is the first thing all accounting students need to understand about them. Let us consider a few analogies to better understand this fundamental idea. Accounting term Debit Credit Analogy: coin Heads Tails Analogy: Newton’s […]