Explanation of "Credit Entry"
Definition:
A "credit entry" is a term used in accounting. It refers to a record that shows an increase in income or assets. When you make a credit entry in your accounts, you are acknowledging that you have received money or that something valuable has increased in value.
Usage Instructions:
Context: You will often see "credit entry" used in business, finance, or personal accounting.
When to Use: Use this term when discussing financial transactions, managing budgets, or preparing financial statements.
Examples:
Basic Example: If a company sells a product for $100, it makes a credit entry of $100 in its sales account to show that it has earned that money.
Advanced Example: In double-entry accounting, every credit entry must have a corresponding debit entry. For instance, if a business receives a loan, it will make a credit entry in its cash account and a debit entry in its loans payable account.
Word Variants:
Credit (noun): Refers to the trust given to someone to borrow money or the acknowledgment of income.
Credited (verb): The act of making a credit entry (e.g., "The account was credited with $500").
Different Meanings:
In finance, "credit" can also refer to a good reputation for paying back loans or the ability to borrow money.
In a more general sense, "credit" can mean giving acknowledgment to someone for their work or contributions (e.g., "She received credit for her research").
Synonyms:
Income entry
Revenue entry
Positive entry
Acknowledgment of funds
Idioms and Phrasal Verbs:
"Give credit where credit is due": This means to acknowledge someone’s contributions or achievements.
"Credit to": To recognize someone for their skills or efforts (e.g., "He deserves credit for the success of the project").
Summary:
A "credit entry" is an important concept in accounting that helps track increases in income and assets.