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Financial statements & accounting records · Core

Credit

Also called: Cr

ELI5

The right side of an account; what it changes depends on the account type.

Used in conversation

“Credit revenue only when the accounting rule says it has been earned.”

Definition

An entry on the right side of an account; it generally increases liabilities, equity and income and decreases assets and expenses.

Here “Credit” means: An entry on the right side of an account; it generally increases liabilities, equity and income and decreases assets and expenses.

Pitch context

You will see “Credit” in financial models, budgets, board packs and investor materials when the discussion reaches financial statements & accounting records.

Why it matters: It helps a reader interpret financial statements & accounting records without confusing the measure, decision, role or evidence being discussed.

Connected terms

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.