ACC 205 Week 1 Discussion Question 2 Debit and Credit

In the file ACC 205 Week 1 Discussion Question 2 Debit and Credit you will find answers on the following tasks:

Recording Business Transactions. Define the terms “debit” and “credit”. Explain how debits and

credits affect the following: assets, liabilities, owner’s capital account, revenues and expenses.

– Debit

– An entry in the financial books of a firm that increases an asset or an expense or an

entry that decreases a liability, owner’s equity (capital) or income.

– Also, an entry entered on the left side (column) of a journal or general ledger account.

– Let’s combine the two above definitions into one complete definition.

An entry (amount) entered on the left side (column) of a journal or general ledger account