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The accounting
equation must stay in
      balance.
Left side of the T
Account is called
Debit.
Right side of the T
Account is called
Credit.                    T
                        ACCOUNT

                      DEBIT   CREDIT
ASSETS = LIABILITIES + STOCK. EQUITY
ASSETS ARE
INCREASED WITH A
DEBIT AND
                      ASSETS
DECREASED WITH A
CREDIT             DEBIT   CREDIT
LIABILITIES ARE
INCREASED WITH A
CREDIT AND
                    LIABILITIES
DECREASED WITH A
DEBIT
                   DEBIT   CREDIT
STOCKHOLDERS’
EQUITY ACCOUNTS
ARE INCREASED WITH             STOCKHOLDERS’
CREDITS AND
DECREASED WITH
                                   EQUITY
DEBITS
                             DEBIT       CREDIT




THE TWO ACCOUNTS THAT INCREASE EQUITY ACCOUNTS
ARE REVENUES AND CAPITAL, THE TWO ACCOUNTS THAT
DECREASED EQUITY ARE EXPENSES AND DIVIDENDS

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Debits and credits a