Accounting debits and credits can be thought of as two sides of a coin. When something is entered on the debit side, it indicates that an asset or expense has either increased or decreased in value. Conversely, when something is entered on the credit side, it represents either an income or a liability — an increase or decrease in terms of assets or expenses. Put simply, accounting debits are always associated with assets, while credits are associated with liabilities and income. It’s a simple concept but one that forms the basis of all financial transactions and bookkeeping.