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 ...

The first general journal entry is a debit to Advertising Expense and a credit to Prepaid Advertising. The reflects that a month's worth of advertising has been expensed and is no longer prepaid.

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.