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Credit Definition (Bookkeeping)

December 3, 2015

Amanda Cameron

Term Definition
In double-entry bookkeeping, a credit shows an account losing value.

Extended Definition
Credits increase liability, equity, and revenue accounts. Credits also decrease asset and expense accounts. You record credits on the right side of an account. Credits are the opposite of debits. Credits and debits help you balance your accounting books.

Related Article
Accounting Basics: Debits and Credits

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