Definition
Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.
Three Criteria of Definition
- Increase in assets or decrease in liabilities
- Leading to an increase in equity
- For reasons other than contributions by the owner
Examples
- Sales
- Fees
Debit and Credit
Increased by a credit, decreased by a debit. Normal balance: credit. See Debit and Credit.