I enjoy the basic of accounting. What a nerd.
T chart with DR on the Left and CR on the right.
Debit does not necessarily mean decrease, it means left.
What you got = Debit, Where it came from = Credit
Assets = Liabilities + Equity
Debits = Credits
Credit the account that gives value and debit the account that receives value.
Summarized Debit and Credit Rules: For example, Account type of assets to increase debit, to decrease credit.
| Account Type | To Increase | To Decrease |
| Assets | Debit | Credit |
| Liabilities | Credit | Debit |
| Equity | Credit | Debit |
| Revenue | Credit | Debit |
| Expense | Debit | Credit |
5 General Account Types:
Assets, Liabilities, Equity, Revenues, Expenses
Credits results in account decreases for assets and expenses and account increases for liabilities, equity, and revenues.
The Cash Flow Statement has three parts: Operating, Investing, and Financing Activities.