A debit entry increases assets, decreases liabilities, or decreases owners' equity?



Answer:
Have you heard the term - double entry accounting and/or that debits = credits?

Let's say you have a company and you buy a book for $50 cash - you debit cash AND you credit books. The 'pair' is no change in assets - it changes what the assets are.

Now sell something for $100 that cost you $50 make - debit cash for $100 credit inventory for $50 - credit owners equity for $50 which is an increase by the amount of the profit.

This is a very simplistic example - just trying to point out that you can't have a debit without a credit.
yes

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