Credit

. Accounting: An entry on the right-hand side of an account record in double entry bookkeeping. It has the effect of decreasing an asset or expense account, or of increasing a capital, liability, or revenue account. See also debit.

2. Banking: Purchasing power created by banks through lending based on fractional reserve system.

3. Commerce: An agreement based largely on trust under which goods, services, or money is exchanged against a promise to pay later. Also called commercial credit.

4. Short form of the term letter of credit.

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