What Does Debiting an Expense Account Mean?

A debit to an expense account means the business has spent more money on a cost (i.e. increases the expense), and a credit to a liability account means the business has had a cost refunded or reduced (i.e. reduces the expense).

What happens when you debit an expense account?

In effect, a debit increases an expense account in the income statement, and a credit decreases it. Liabilities, revenues, and equity accounts have natural credit balances. If a debit is applied to any of these accounts, the account balance has decreased.

What does debiting an account mean?

When your bank account is debited, money is taken out of the account. The opposite of a debit is a credit, in which case money is added to your account.