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Debit
An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.
Credit
A financial agreement where a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.
Equity Account
An account representing the owner's or shareholders' interest in a company, reflected in the capital stock, retained earnings, and contributed surplus on the balance sheet.
Unearned Revenue
Money received by a company for products or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.
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