In accounting, understanding the difference between debits and credits is crucial. The DEALER formula is a mnemonic that simplifies this concept. DEALER stands for Dividends, Expenses, Assets (Debits) and Liabilities, Equity, Revenues (Credits). Debits increase dividends, expenses, and assets, while credits increase liabilities, equity, and revenues. By categorizing transactions using this formula, learners can effectively remember which accounts to debit or credit, thereby enhancing accuracy in financial reporting.