الموضوع: Double Entry Accounting Definitions

Double Entry Accounting Definitions The definitions of a debit and credit are : A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry . An account is a separate, detailed record associated with a specific asset, liability, equity, revenue, expense, gain, or loss. Examples of accounts are : Cash (asset account: normally a debit balance) Accounts receivable (asset account: normally a debit balance) Inventory(asset account: normally a debit balance) Fixed assets (asset account: normally a debit balance) Accounts payable (liability account: normally a credit balance) Accrued liabilities (liability account: normally a credit balance) Notes payable (liability account: normally a credit balance) Common stock (equity account: normally a credit balance) Retained earnings (equity account: normally a credit balance) Revenue - products (revenue account: normally a credit balance) Revenue - services (revenue account: normally a credit balance) Cost of goods sold (expense account: normally a debit balance) Wage expense (expense account: normally a debit balance) Utilities(expense account: normally a debit balance) Travel and entertainment (expense account: normally a debit balance) Gain on sale of asset (gain account: normally a credit balance) Loss on sale of asset (loss account: normally a debit balance) Read more TRANSLATION OF THE TOPIC