credit

Definition:

1. An entry in an account that represents a decrease in the value of assets or an increase in the amount of liabilities. It is conventional to make credit entries on the right-hand side of a written record of an account. Compare ‘debit’. 2. An increase in the amount that a customer of a bank has deposited with the bank (which is a liability – see sense 1 – from the point of view of the bank). 3. To make an entry in an account representing a decrease in the value of assets or an increase in the amount of liabilities. 4. An allowance of time for the payment of a debt. 5. Another term for ‘letter of credit’.



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