No, not debit or credit card, but your accounting debits and credits. You may also say they’d be your assets and liabilities because with debits and credits you’re “creating” your balance sheet and income statement. Normally and simply put with the debit side of an entry you increase assets or decrease liabilities and vice a versa with the credit side.

How debit and credit work is that the total of each side needs to be balanced – as the assets are to equal with liabilities and equity – it’s your assets versus someone else’s assets and investments into your company. They’re always to equal.

When we talk about debits and credits what we mean is exactly that – your entries onto accounts on your financial statements – assets and liabilities, income and expenses. We’ll define the terms in more depth later on and also give you lots of example entries in our course about basic accounting.