What is a credit?
Credit
A credit is an accounting entry that increases liabilities, equity, or revenue, or decreases assets. In double-entry bookkeeping, credits are recorded on the right side of an account and every transaction includes at least one corresponding debit.
Example: When a business earns revenue from a sale, the revenue account is credited while another account, such as cash or accounts receivable, is debited.
Related terms: Debit, Double-Entry Bookkeeping, Journal Entry, General Ledger
