Discover the key differences between debits vs credits in accounting — debits increase assets, while credits boost liabilities and equity. In accounting, debits increase assets and decrease ...

If you're interested in investing, you've probably read quite a few articles that say "do your homework" before buying a stock. Reading and understanding a balance sheet is part of that homework.

Accounting involves reporting financial events and transactions. The double-entry recording system captures a more reliable picture of a business' net worth because it assumes that a single event or ...

Income accounts track how money enters the business, while expense accounts show where it is spent. Asset and liability accounts record what the business owns and owes at any time. This structure ...

While it seems contradictory that assets and expenses can both have debit balances, the explanation is quite logical when one understands the basics of accounting. Modern-day accounting theory is ...

Assets generate income and appreciate in value, while liabilities drain resources and depreciate over time. Do you want to improve your net worth? Probably so. But if you’re like many people, you ...