Decrease Assets and Increase Liabilities (DAIL) is an accounting concept that describes a situation where assets decrease and liabilities increase. In other words, expenses outpace income. It’s a business term most often used to assess the stability or growth potential of a company. Put simply, it’s bad news for any business if their liabilities are constantly outpacing their assets – as their financial health is likely to suffer. That said, there can be healthy reasons for increasing liabilities – such as taking on loans or using debt to fund investments that will bring in more money and ultimately strengthen the business. So while DAIL isn’t an ideal situation, it doesn’t necessarily spell disaster either.