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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use