Asset Accounts Debits or Credits are a basic accounting concept. They define whether the value of an account increases or decreases when a transaction is recorded. A Debit to an Asset Account increases the balance and a Credit decreases it. This concept applies to all asset accounts such as cash, accounts receivable and inventory, which are all tangible assets. Understanding these debits and credits is essential in making accurate records for any business. With the power of debits and credits you can accurately keep track of your assets and ensure the success of your business.