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Investments glossary

Debit

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A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet. In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction. For instance, if a firm takes out a loan to purchase equipment, it would debit fixed assets and at the same time credit, a liabilities account, depending on the nature of the loan.



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