According to accounting conventions, how are debits and credits typically recorded?

In accounting, the proper recording of debits and credits is fundamental to maintaining accurate financial records. Debits are recorded as positive numbers, reflecting an increase in assets or expenses, while credits are recorded as negative numbers, indicating either a decrease in assets or an increase in liabilities or equity. This convention ensures clarity in the double-entry accounting system, where every transaction affects at least two accounts, maintaining the accounting equation of assets equal to liabilities plus equity.

By understanding this framework, it becomes clear how financial statements are constructed and analyzed. Accurate recording of debits and credits is essential for reconciliation and reporting, impacting everything from balance sheets to income statements. This method aids in tracking financial performance consistently over time.