Encyclopedia

Credit. An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned on […]

Credit: An entry recording income or liability (opposite of debit).

Current Assets. Assets that can or will be converted to cash within one year or less. Typically, this could be cash, inventory or […]

Current Liabilities. Liabilities that cash will be used to pay within one year or less.

Debit. An accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned on […]

Debit: An entry recording an expense or asset increase (opposite of credit).

Depreciation. A non-cash expense that shows an asset’s loss of value due to usage and/or time.

Depreciation: The gradual reduction in the value of an asset over time.

Dividends: Profits distributed to shareholders.

Double-Entry System: The accounting method where every transaction affects at least two accounts (debit and credit).