Debits Increase Assets and Decrease Liabilities (DIAADL) is a business term that means that when a company increases an asset, such as cash or inventory, they are also increasing their liabilities. By debiting an account, the company is essentially increasing its financial obligations. This concept may seem counterintuitive, but it’s an important principle of accounting and financial management. If a company debits an account, they are taking on greater financial liability. By doing this on a regular basis, companies can ensure that their liabilities are kept in check and their assets remain strong.