what are assets?
what are liabilities?
what is debit?
what is credit?
Answers
Answer:
Assets- An asset is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets.
Liabilities- A liability is typically an amount owed by a company to a supplier, bank, lender, or other provider of goods, services, or loans. Liabilities can be listed under accounts payable, and are credited in the double entry bookkeeping method of managing accounts.
Debit- A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet. In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction.
Credit- Credit is the ability to borrow money or access goods or services with the understanding that you'll pay later.
Lenders, merchants and service providers (known collectively as creditors) grant credit based on their confidence you can be trusted to pay back what you borrowed, along with any finance charges that may apply.