Interest income credit or debit is a financial term that refers to when businesses are either receiving interest income (creidt) or paying interest expense (debit). This can refer to a number of different types of financial investments, such as bonds, loans, and deposits.

Interest income credits happen when businesses receive payments for reserves invested in certain securities or when a loan is issued and the borrower pays back interest on the amount borrowed. On the other hand, interest expense debits take place when businesses borrow money from lenders, taking out loans and paying interest to those lenders. Both credits and debits must be reported in business’s financial statements in order to ensure accuracy and compliance with accounting standards.