Debit

Explanation: A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet. It’s the opposite of a credit.

Example: Debiting the cash account when your food blog receives payment from an advertiser.

Potential Issues: Misapplying debits can result in the overstatement of assets and expenses, leading to a distorted view of the company’s financial health. It can affect budgeting, financial planning, and may result in compliance issues with financial reporting standards.