Every transaction recorded in at least two accounts, with debits equal to credits.
Double-entry bookkeeping records every transaction in at least two accounts, with total debits always equal to total credits. Money never appears or vanishes — it always moves from somewhere to somewhere, and the books capture both sides.
This is the system behind essentially all real accounting software, including QuickBooks® — even when the software hides the debits and credits behind friendly forms. Its superpower is self-checking: if debits don't equal credits, something is mechanically wrong, and the trial balance will say so.
A $10,000 bank loan arrives: Cash (asset) is debited $10,000 and Loan Payable (liability) is credited $10,000. The books balance, and both truths — you have more cash, you owe more money — are recorded at once.
Debits and Credits · Trial Balance · General Ledger — or browse the full plain-English glossary.
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