What does DEA/LER stand for in accounting?

The correct answer is indeed the second choice, which details the accounting equation and the rules for debits and credits in double-entry bookkeeping. The acronym DEA/LER stands for:

• Debit for Expenses and Assets
• Credit for Liabilities, Equity, and Revenue

In accounting, understanding how debits and credits affect accounts is crucial. Expanding on the components, when an expense or an asset increases, the corresponding entry is recorded as a debit. On the other hand, when liabilities, equity, or revenue increase, those entries are recorded as credits.

This systematic approach ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced, reflecting the fundamental principle of double-entry accounting where every transaction affects at least two accounts. By recognizing how each type of account behaves with regard to debits and credits, accountants can accurately record financial transactions and maintain clear, organized financial records.