Debits and Credits flashcards are a helpful study tool for learning about accounting and bookkeeping. These flashcards can help students memorize and understand the concepts of debits and credits in a visual and interactive way.
Understanding Debits and Credits is essential in accounting as they are used to record financial transactions accurately. Debits are used to record increases in assets and expenses, while credits are used to record decreases in assets and expenses. These concepts are the foundation of double-entry accounting, which is widely used in the business world.
Learn Debits And Credits With Flashcards
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quick facts
- Debits and credits are used in accounting to track the flow of money in and out of a business.
- Debits are used to record increases in assets and expenses, while credits are used to record increases in liabilities, revenues, and equity.
- Debits are always recorded on the left side of an accounting entry, while credits are always recorded on the right side.
- Debits and credits follow the accounting equation: Assets = Liabilities + Equity.
- Debits and credits help maintain the balance of a company’s financial records by ensuring that every transaction has equal debits and credits.
card list
| Front | Back |
|---|---|
| Purchase | Buying something in exchange for money. |
| Expense | Money spent or cost incurred for goods or services. |
| Withdrawal | Withdrawal: Taking something away or removing it from a situation. |
| Payment | Payment: Giving money or something else of value in exchange for goods or services. |
| Asset | Something valuable that is owned by a person or company. |
| Sale | Sale: When something is sold to someone in exchange for money. |
| Revenue | Income earned by a company from selling goods or services. |
| Deposit | Money that is put into a bank account. |
| Income | Money that is earned or received from work, investments, or other sources. |
| Liability | Liability: Something you are responsible for, like a debt or obligation. |