Is a liability account a debit or a credit?

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1026499

2026-03-04 09:10

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Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity)

Assets increase with a debit

Liabilities as well as Equity increase with a credit

Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.

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