acct205db1 - <name removed to preserve anonymity>...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
<name removed to preserve anonymity> ACCT205-1103A-11 Principles of Accounting I Discussion Board 1 7/20/2011 Usage of Debits and Credits on Balance Sheets and Income Statements Balance sheets and income statements are the two most important financial documents you will use in your business. To begin understanding the usage of debits and credits in these documents, you first need to understand that debits and credits are used in accounting to increase or decrease accounts in both the balance sheets and in the income statements (AIU Online, 2011). Any asset account or expense account are decreased via credits and increased via debits. Opposite to that, any liability, revenue accounts, or equity held by owners would be increased via credits and decreased via debits. (AIU Online, 2011). To illustrate these two different definitions of debit and credit, an example is provided below to illustrate the correct usage of credit's and debit's in both of the situations described above:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

acct205db1 - &lt;name removed to preserve anonymity&gt;...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online