================================================================ Accounting Terminology
Accountants use the terms debit and credit to describe whether money is being transferred to or from an account. Money is recorded in the debit column, which is always the left column, when it is being transferred to an account. Money is recorded in the credit column, which is always the right column, when it is being transferred from an account. Money always flows from the right column of one account to the left column of another account.
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Couple of things I would like to suggest changing:
The concept of "transferring money to" and "from" an account is somewhat vague. "Transferring money into" a revenue account, for example, means increasing that account balance - an entry on the RIGHT side of the ledger. It's probably less confusing to simply say that some types of accounts (like Assets and expenses) INCREASE when transactions are recorded on the left side, and other types (like equity and revenue) increase when transactions are recorded on the right side.
Here's what I would suggest for verbiage. Pick your own words, but something along these lines would be, IMHO, clearer - especially because some basic accounting concepts are previously covered in the manual:
======================================================= Accounting Terminology
One of the biggest roadblocks you'll have to overcome when learning accounting terminology is the use of the words debit and credit. To the average person, debit indicates a reduction in the money you have - like a debit on their credit card or bank account. And, likewise a credit indicates some type increase in the money they have, like of refund or income. But, in accounting, the terms debit and credit refer strictly to how a transaction gets recorded in any given account. It has nothing to do with "increasing and decreasing what you have", per-se.
Accountants use the terms debit and credit to describe which side of the account ledger a transaction is recorded. When money is recorded on the left side of an account, the amount is a debit. Whenever money is recorded on the right side of an account, the amount is a credit.
Money is recorded in the debit column, which is always the left column, when it increases an asset or expense account. Money is recorded in the credit column, which is always the right column, when it increases any equity, liability, or income account.
(notice I address all five account types discussed in section 2.1.1)
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Richard Schilling
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