In the 14th century, plague ravaged Europe and Asia and was called the Black Death. Plague does not respond to penicillin, but other antibiotics are effective. Sanitary measures against fleas and rodents, quarantine and extreme caution in handling infectious materials help to suppress epidemics.
1. Expense recognition. Expenses are decreases in assets (e.g., rent expenses) or increases in liabilities (e.g., accrued utility expenses) that result from operating activities undertaken to generate revenue. Expenses are recognized in accordance with the matching principle. This principle mandates that the expense or cost of doing business is recorded in the same period as the revenue that has been generated as the result of incurring that expense or cost.
Because equity is on the right side of the equation, record an increase in a revenue account on the right side of the âTâ account. So to increase revenue we credit it. On the other hand, because expenses are decreases in equity, they are recorded on the left side of the âTâ. So to increase an expense we debit it.Debitâ simply means the left side of the âTâ account, and âcreditâ refers to the right side of the âTâ account. But remember: âDebitâ does not always refer to an increase in an account balance nor does âcreditâ always refer to a decrease, or vice versa.