Credits Increase Assets And Decrease Liabilities (C.I.A.D.L) is a fundamental accounting principle that states when an asset is increased, a corresponding liability must be decreased. Put simply, credits increase assets and decrease liabilities – so if you have an increase in one side of the balance sheet, there must be an equal decrease in the other side. This concept helps to keep businesses in check and ensure they are managing their finances correctly. Ultimately, it’s all about keeping your books balanced!