boonestudent18
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All these two words mean are debit is the left side and credit is the right side... according to my accounting text book...
According to wikipedia:
A credit changes the balance of an account. Asset and expense accounts decrease in value when credited, whereas liability, equity, and revenue accounts increase in value when credited. This distinction is somewhat counterintuitive, until the nature of those accounts is more closely scrutinized. For example, revenue is coded as a credit. After recording a day's sales, the company will have credited a certain amount in revenue, and since credits are negative numbers, the balance grows more and more negative. An adjustment to revenue would need to be a debit, because its purpose is to bring the revenue totals closer to zero.
A debit changes the balance of an account. Asset and expense accounts increase in value when debited, whereas liability, equity, and revenue accounts decrease in value when debited. This distinction is somewhat counterintuitive, until the nature of those accounts is more closely scrutinized. For example, revenue is coded as a credit. After recording a day's sales, the company will have credited a certain amount in revenue, and since credits are negative numbers, the balance grows more and more negative. An adjustment to revenue would need to be a debit, because its purpose is to bring the revenue totals closer to zero. |
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♥cute~girl♥
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Credit is making money (money comming in)and debit is spending it (money going out). |
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getrd2go
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Credit : Buy Now Pay later Intrest fees
Debit: Taken directly out of your checking account no fees |
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Economics Guy
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Simply put debit means left and credit means right.
Specifically, debits increase account values that have normal debit balances and decrease accounts with normal credit balances. Credits increase accounts with normal credit balances and decrease accounts with normal debit balances. More specifically debits increase asset, dividend and expense accounts, credits increase liability, stock, retained earnings and revenue accounts. |
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oil field trash
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When you do double entry book keeping, one is on the left and one is on the right. |
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ncgirl
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It really depends on the type of account. An bank account would be debit-money going out, credit-money coming in, but in the case of a payable account a debit is money in and a credit it money out |
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Conan the Librarian
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DEBIT
A debit is money paid out from an account.
CREDIT
A credit is money paid into an account. |
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porscheleenj
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Debit means that you must put money into the account before you can spend it and you can take money out any time you want. Credit means that you first spend the money(borrow) then you pay it back when the bill comes. I prefer debit over credit because in debit you can only spend how much money you put in there, and in credit you can spend an unlimited amount of money only to find that you don't have that kind of money. |
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catfordken
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debit means you can only take out what you have in your bank account ,credit means you can spend to cards limit,ie pre arranged amount set by you and card company |
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rocswife
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WELL ALL THOSE IS THE CORRECT ANSWER BUT YOU CAN ALSO USE YOUR DEBIT CARD AS A CREDIT CARD THE THING ABOUT THAT IS THERE IS A 25 DOLLAR FEE ON IT IF SUFFICIENT FUNDS NOT AVAILABLE OH AND IT IS USAUALLY ONLY A 500 DOLLAR LIMIT ON THAT.IT IS SORT OF LIKE A CURTISY LOAN. |
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badguyjoe8
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a debit is paying all the cash
a creidt is paying some of it but not all of it |
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jaycharles06
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Credit and debits in accounting are the opposite to how balances are shown on bank statements. A credit is when money is paid from a ledger to an entity outside a company, and a debit is when money is paid to a ledger account. Credits are often when money is owed to another company or another ledger account within the same company. A debit is the reverse.
The reason debits and credits are represented the otherway around on bank statements is because that is how the bank sees your account with them. I.E. a credit balance is when the bank owes you money. |
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jjbtco2010
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debit is money you can only take out of your account, and has to be already in it. is like a check/.
credit is you loan money from the credit card company and pay it back when the bill comes. it charges fees and interest |
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