Читать книгу Reading Financial Reports For Dummies - Lita Epstein - Страница 74

You probably think of the word debit as a reduction in your cash. Most nonaccountants see debits only when they're taken out of their banking account. Credits likely have a more positive connotation in your mind. You see them most frequently when you've returned an item and your account is credited.

Forget everything you think you know about debits and credits! You're going to have to erase these assumptions from your mind to understand double-entry accounting, which is the basis of most accounting done in the business world.

Both cash-basis and accrual accounting use this method, in which a credit may be added to or subtracted from an account, depending on the type of account. The same is true with debits; sometimes they add to an account, and sometimes they subtract from an account.