Asset-Liability= Equity (Accounting And Finance)?
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I just learn't accounting at TAFE today, i just want to know why income is credit?, and expense is debit?. what point of view are we thinking here? and please explain. I already know i debit assets, and credit liability's. its equity the same as liability? Asset-Liability = equity? i think equity is how much the business would
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Answer:
These are accounting conventions which you just have to learn by heart: Assets and expenses are debits. Liabilities, equity and revenue are credits. The basic accounting equation is as you understand, although it is also expressed as: Assets = Liabilities + Equity Writing it this way keeps the debit on one side and all the credits on the other side.
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