Why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them?
http://www.understand-accounting.net/debitsandcredits.htmlDebit means left and credit means right. Assets are n the left of the accounting equation and credits and liabilities are on the right. Revenues end up being increases in equity when they are closed out at the end of the accounting period. Therefore they are credits. Expenses reduce equity and therefore are debits.
TN CPA with Master's degree from Ole Miss