What is a debit and credit in accounting?

In accounting, the terms debit and credit indicate how a transaction impacts specific accounts. Every time a transaction occurs, it affects at least two accounts. It debits at least one and credits at least another.

Debits (Dividends, Expenses, Assets)

You have a debit if any of the following accounts go up:

• Assets
• Expenses
• Dividends

Credit (Liabilities, Revenue, Equity)

You have a credit if any of the following accounts go up:

• Liabilities
• Equity
• Revenue