The terms debit and credit signify actual accounting functions, both of which cause increases and decreases in accounts, depending on the type of account. That’s why simply using “increase” and “decrease” to signify changes to accounts wouldn’t work. There are a number of ways organisations report their CR/CSR activities, although most can be split into four key themes covering Community, Workplace, Marketplace and Environment, or aspects of them. It has though become increasingly apparent over recent years that the value of honest information is significant from a reputation as well as business perspective to both internal and external customers. Accounts payable is a type of liability account, showing money which has not yet been paid to creditors.

The term debit comes from the word debitum, meaning “what is due,” and credit comes from creditum, defined as “something entrusted to another or a loan.” There are a few theories on the origin of the abbreviations used for debit (DR) and credit (CR) in accounting. To explain these theories, here is a brief introduction to the use of debits and credits, and how the technique of double-entry accounting came to be. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.

Acronyms & Abbreviations

For example, say Company XYZ issues an invoice to Client A. The company’s accountant records the invoice amount—$1,000—as a debit, or DR, in the accounts receivables section of the balance sheet, because that is an asset account. The company records that same amount again as a credit, or CR, in the revenue section. If “CR” appears beside an amount, it means the amount is a credit on your account.

• If “CR” appears beside an amount, it means the amount is a credit on your account.
• Over years, I often come across the same questions from different business owners, “What is my tax number?
• It has though become increasingly apparent over recent years that the value of honest information is significant from a reputation as well as business perspective to both internal and external customers.
• All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.

When Client A pays the invoice to Company XYZ, the accountant records the amount as a credit (CR) in the accounts receivables section, showing a decrease, and a debit (DR) in the cash section, showing an increase. A CR review will help you to identify the potential impacts of your business on society and the environment. It will enable you to rank these impacts in order of pertinence and risk. It will establish where you currently stand as far as managing these impacts.

Often as a result organisations will focus on a fewer, more “high profile” or “pet”  CR/CSR initiatives which are then fanfared at the expense and possible detriment or oversight of others. CR can help you drive down energy costs, improve customer service, and enhance your brand – to cite just three benefits vital to the sustainability of a business. The designation “CR” next to an item means it’s a credit to your account rather than a charge for which you have to pay, like a purchase you made with the card.

Most organisations are already doing something positive under the Corporate Responsibility/ Corporate Social Responsibility heading, but have not fully recognised it as such. Examples include charity work, good workplace health, safety and wellbeing, community programmes, environmental initiatives purchases journal format calculation and example around net zero, waste and recycling and social value. What HR is doing may not always be visible to facilities and visa versa. By having a management review from an external consultant, you can pull all these efforts together and create a plan for sustainable improvement within your business.

What does CR Stand For in Business & Finance ?

Due to its very nature, the only way of undertaking good CR reporting is by making it honest, genuine and with the best of intentions. A good CR report tells of the good and the not so good, acknowledgement of poor performance and a commitment to its improvement is after all part of it’s purpose. Currently 10,000s of CR/CSR reports are produced each year, with output from organisations in over 150 countries (corporateregister.com figures). When it comes to the DR and CR abbreviations for debit and credit, a few theories exist. One theory asserts that the DR and CR come from the Latin present active infinitives of debitum and creditum, which are debere and credere, respectively. Another theory is that DR stands for “debit record” and CR stands for “credit record.” Finally, some believe the DR notation is short for “debtor” and CR is short for “creditor.”

Can you solve 4 words at once?

It will instigate a commitment to change and improvement which every organisation must have in order to succeed in the future. Good CR/CSR reporting should offer a true reflection of your organisations, it’s culture and values and realistically discuss the challenges as well as the opportunities in front of it. Any information you provide, particularly performance statistics and statements should be open to scrutiny, verifiable and accurate. Every transaction that occurs in a business can be recorded as a credit in one account and debit in another.

How CR is good for business?

An invoice which has not been paid will increase accounts payable as a debit. When a company pays a creditor from accounts payable, it is a credit. When registering a business in Hong Kong, HKSAR government provides an one-stop joint service by the Companies Registry and the Inland Revenue Department.

Whether a debit reflects an increase or a decrease, and whether a credit reflects a decrease or an increase, depends on the type of account. When you increase assets, the change in the account is a debit, because something must be due for that increase (the price of the asset). Conversely, an increase in liabilities is a credit because it signifies an amount that someone else has loaned to you and which you used to purchase something (the cause of the corresponding debit in the assets account). Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. Indicates an entry on the right side of a general ledger account.

The terms industry concentration ratio and market concentration ratio are sometimes used. If you do not have your BR certificate on hand, there is also a quick way to check your BR number online. You can conduct a search at GovHK Business Registration Number Enquiry ( /br ).