Definition

Noun: 1. The side of an account that records payments received or amounts owed to the entity: In double-entry bookkeeping, the credit side is the right-hand side of a ledger account. It records increases in liabilities, owner's equity, and revenue, or decreases in assets and expenses. 2. The favorable or positive aspect of a situation: Used figuratively to denote the positive elements or advantages in an assessment.

Usage and Examples

• Noun (Accounting):
  • All revenue entries are recorded on the credit side of the income statement.
  • To increase the liability account, you must make an entry on its credit side.
• Noun (Figurative):
  • When evaluating the project, we must list both its failures and its credit side.
  • On the credit side, the new policy has significantly improved employee morale.

Advanced Usage

• "to be on the credit side": To be in a position of advantage or to have a net positive outcome.
  • After all the calculations, our company is finally on the credit side this quarter.

Variants and Related Words

• Credit (n): (1) An accounting entry that increases a liability or equity account, or decreases an asset or expense account. (2) The ability to obtain goods or services before payment. (3) Praise or recognition.
• Debit side (n): The left-hand side of an account, which records payments made or amounts owed by the entity. It is the opposite of the credit side.

Synonyms

• Asset column (in specific contexts)
• Positive column
• Gains side

Antonyms

• Debit side
• Charge side

Related Phrases

• Credit entry: An individual record made on the credit side of an account.
  • Make a credit entry for the full invoice amount.
• Credit balance: The condition where the total credits on an account exceed the total debits.
  • A credit balance in a revenue account indicates earnings.

Noun

1. account of payments received; usually the right side of a financial statement