Define: Credit

UK Accounting Glossary

Definition: Credit



What is the dictionary definition of Credit?

Dictionary Definition


  1. 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. Related: debit.
  2. Banking: Purchasing power created by banks through lending based on the 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.
    Short form of the term letter of credit.

Also:

  • Reliance on the truth of something said or done; faith; trust.
  • uncountable Recognition and respect.
  • countable Acknowledgement of a contribution, especially in the performing arts.

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Examples of Credit in a sentence


He didn’t have enough cash to pay for a holiday this year, so he decided to take out a loan and purchase it on credit.



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/credit/
Modern Language Association (MLA):
Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 26, 2020 https://payrollheaven.com/define/credit/.
Chicago Manual of Style (CMS):
Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/credit/ (accessed: February 26, 2020).
American Psychological Association (APA):
Credit. PayrollHeaven.com. Retrieved February 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/credit/

Definition Sources


Definitions for Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th December 2019.