A record of a business transaction that establishes a contractual relationship between a buyer and seller under which delivery is taken immediately, while payment is deferred for a future date as arranged. Credit account, open account or charge account also imply the same meaning, depending on the type of relationship (personal, commercial, etc). whatever the name is, this arrangement means a credit is extended by a business to a customer. Additionally, it refers to a historical record of transactions under a contractual arrangement, as periodically shown on the statement of account.
May 8, 2024
