Retained earnings increase the... How to Close an Expense Account ... and the retained-earnings account with a credit. Decrease these accounts with a debit. Dividends and retained earnings ...

whereas credits increase liabilities and equity and decrease assets. Understanding the difference between a debit and a credit is key to accurate accounting for your business, but keeping them ...

Credits increase revenue, liabilities and equity accounts, whereas debits increase asset and expense accounts ... of every debit and its corresponding credit should always be zero.

A few theories exist regarding the origin of the terms "debit (DR)" and "credit (CR)" in accounting. Both have Latin roots. An increase in liabilities or shareholders' equity is a credit to the ...