debit

(noun)

A sum of money taken out of an account.

Related Terms

  • balance of trade
  • credit

Examples of debit in the following topics:

  • The Current Account

    • In calculating the current account, exports are marked as a credit (inflow of money) and imports are marked as a debit (outflow of money).
    • Likewise, a debit in the income account takes place when a foreign entity receives money from an investment in the local economy.
    • Similarly, a debit in the cash transfers column might be the provision of official assistance by the local economy to a foreign economy.
  • The Balance of Payments

    • Whenever a country has an outflow of funds, such as when the country imports goods and services or when it invests in foreign assets, it is recorded as a debit on the balance of payments.
  • Difference Between Economic and Accounting Profit

    • Put another way, accounting profit is the same as bookkeeping costs and consists of credits and debits on a firm's balance sheet.
  • The Money Multiplier in Theory

    • This consists of the dollars in your bank account - the money that you use when you write a check or use a debit or credit card.
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