Question

what does credit in an asset account signify?

Answer 1

There can be considerable confusion about the inherent meaning of a debit or a credit. For example, if you debit a cash account, then this means that the amount of cash on hand increases. However, if you debit an accountspayable account, this means that the amount of accounts payable liabilitydecreases

Answer 2

A few asset accounts intentionally have credit balances. For instance, the account Accumulated Depreciation (which is a plant asset account) will have a credit balance since it is credited for the amounts that are debited to Depreciation Expense. ... Expenses occurred faster than the agreed upon prepayments.