credit

credit definition - business

credit

  1. The ability to borrow or to purchase goods and services with payment delayed beyond delivery.
  2. An accounting entry resulting in an increase in liabilities or owners' equity or in a decrease in assets. Compare debit.
  3. The balance in an account.
  4. An adjustment in favor of a customer. For example, a business may receive credit for damaged merchandise delivered by a manufacturer.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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