Investor Glossary-debitInvestor Glossary-debitInvestor Glossary-debitInvestor Glossary-debitInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Debit

The HTML to link to this page
 

A debit is a bookkeeping entry that results in the increase of an asset or a decrease in a liability or owners equity. A debit has the opposite effect of a credit, which either decreases an asset or increases a liability or owners equity. A debit (or credit) per se is neither positive or negative for the company's financial position. For example, if the company receives cash (an asset), a debit is posted to the cash account, because a debit increases an asset. If the company receives a telephone bill (thereby incurring an expense, which decreases owners equity), a debit is posted to the utility expense account, because a debit decreases owners equity. Therefore, rather than consider a debit as something either good or bad, it's better to think of a debit as merely a left-side bookkeeping entry (assets are listed on the left side of the balance sheet) and a credit as a right-side bookkeeping entry (where liabilities and owners equity can be found).



Rate this debit definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, in escrow, command economy, class C shares, ex-dividend date, limit order, balance sheet, LIBOR, implied volatility, required rate of return, stock market close, APR, margin rate, Zero Cost Collar, phantom income, 1035 exchange, retained earnings, inflation, diluted share, VIX, real GDP, annual return, current ratio, dividends payable, risk management, quality assurance, FTSE, EBITDA, irrevocable trust, deferred revenue, stock split, deferred tax, FICO score, reverse mortgage, option premium, wholly-owned subsidiary, average price per share, debt service coverage, 1031 exchange, cancelled check, minority interest, liquidity ratio, 401a, 144a, covered put, Key Rate Duration, ex-dividend, open position, per diem


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use