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Term 'Credit' means by the business

This question belongs to Commerce Accounting
Accounting
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Term 'Credit' means _____ by the business

Answer & Solution
Correct Answer: Option A
Term 'Credit' means Receiving of benefits by the business. The terms which indicate when payment is due for sales made on account (or credit).
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1 Comment
Zain Za
Zain Za 3 years ago
According to double entry bookkeeping,
What comes In is debit and what goes Out is credit.
So credit means what goes Out... means a business is providing benefits to someone.
So I think the answer would be .... Providing benefits...
Please guide me if my understanding goes wrong...
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