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Replying to @April Mills debits and credits are the fundamental building blocks of accounting and one of the most important topics we cover in intro accounting. The key here is that most people initially think that debits and credits mean something they don’t. All that debit means is “left” and credit means “right”. How they affect specific accounts depends on the account TYPE (asset, liability, equity, revenue, expense). Once you are able to classify accounts by their types I think it should he
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In intro #accounting class, one of the most important and fundamental building blocks is our knowledge of #debits and #credits and how these things impact accounts, journal entries, etc. I encourage students to FIRST think through what TYPE of account we are dealing with and if that account is INCREASING or DECREASING. Then we can apply knowledge of debits and credits. I introduce a helpful acronym to memorize which accounts are normal debit (increase with debits) or normal credit (increase with
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