Liability Increase Debit or Credit is a key concept in business accounting. It refers to the measurement of any increase or decrease in an organization’s liabilities over time. The increase in liability is known as Debits, and the decrease as Credits. Debits represent money spent by an entity, while credits represent money owed by it. Keeping track of these transactions allows businesses to accurately assess their financial performance and help them plan for future success. Understanding how Liability Increase Debit Or Credit works can be difficult, but it’s essential knowledge for running a successful business.