The left side of an account is known as?

In accounting, the left side of an account is referred to as the debit side. In the double-entry accounting system, each transaction affects at least two accounts and is recorded as a debit in one account and a credit in another.

Debits represent increases in assets and expenses or decreases in liabilities and equity. This structure is fundamental to maintaining the accounting equation, where assets equal liabilities plus equity. By understanding that the left side of an account is designated for debits, one can accurately record and analyze financial transactions, ensuring that the books remain balanced.

The other options relate to different concepts in accounting: credit is the right side of an account, which affects liabilities and equity differently; liability refers to amounts owed by a business; and asset represents resources owned by a business. Each of these plays a distinct role in the overall accounting framework, but they do not pertain to the definition of what the left side of an account signifies.