Final answer:
A credit is an amount that constitutes an addition to revenue.
Step-by-step explanation:
An amount that constitutes an addition to revenue is called a credit. When a company receives payment or earns income, it records it as a credit, which increases its revenue. For example, if a company sells a product to a customer and receives payment, it would record that amount as a credit to its revenue. An amount that constitutes an addition to revenue is known as a credit. In the context of accounting, credits increase revenues, liability accounts, and equity accounts. They are entered on the right side of an accounting ledger. Understanding this concept is fundamental to managing financial records and preparing accurate financial statements. Credits contrast with debits, which are entered on the left side of an accounting ledger and usually constitute expenditures or assets. Regarding the provided reference information: A deficit is b. the annual budget shortfall between revenues and expenditures. This means that the government's expenses exceed its income within a given fiscal year, leading to the need to borrow to cover the gap. This concept is crucial in understanding government finances and budgeting practices.