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Asset Account
An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.
Debit
An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left in an accounting entry.
Credit
An accounting entry that increases a liability or equity account or decreases an asset or expense account, reflecting the opposite of a debit.
Basic Accounting Equation
Assets = Liabilities + Stockholders’ Equity.
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