In double-entry accounting, what are increases in asset accounts recorded as?

In double-entry accounting, increases in asset accounts are recorded as debits. This fundamental principle reflects the accounting equation, which states that assets equal liabilities plus equity. When an asset increases, it means that the company has acquired value, which needs to be represented in the accounting records by increasing the corresponding asset account.

Debits are the entries made on the left side of an account and signify an increase in assets or expenses and a decrease in liabilities or equity. Therefore, when you are recording the purchase of inventory or the receipt of cash, for example, these transactions would be documented as debits to the respective asset accounts, thereby accurately reflecting the financial position of the business.

The other options refer to different aspects of accounting: credits are used for decreases in assets or increases in liabilities; withdrawals pertain to the owner's drawing from the business; and investments usually involve the introduction of capital to the business, not directly related to the accounting of asset increases.