On the bank’s balance sheet, your business checking account isn’t an asset; it’s a liability because it’s money the bank is holding that belongs to someone else. So when the bank debits your account, they’re decreasing their liability. When they credit your account, they’re increasing their liability. Today, most bookkeepers and business owners use accounting […]

This might occur when a purchaser returns materials to a supplier and needs to validate the reimbursed amount. In this case, the purchaser issues a debit note reflecting the cash flow lending definition pros and cons strategies accounting transaction. Consider the scenario of a small craft brewery that begins to expand its operations. Certain accounts are […]

This affects how a company makes money and manages its spending, which changes its financial health. University instructors and accounting supervisors put a lot of effort into teaching this. They use tools like accounting online resources to help tell the financial story accurately. Debits and credits shape our financial standings in reports like the balance […]