Asked by Hassaan Haider on Jun 14, 2024
Verified
Revenues are equal to the difference between cash receipts and cash payments.
Revenues
The total income generated from normal business operations, including discounts and deductions for returned merchandise.
Cash Receipts
The collection of money, including cash, checks, and credit card payments, recorded by a business.
Cash Payments
Transactions where the payment for goods or services is made in cash at the time of purchase.
- Comprehend the method through which different types of transactions, including cash receipts, cash disbursements, revenues, and expenses, are documented.
- Perceive the importance of revenue and expense accounts in evaluating business profit.
Verified Answer
JL
Jackson Lefever
Jun 16, 2024
Final Answer :
False
Explanation :
Revenues refer to the income earned from the normal business operations and other activities, while the difference between cash receipts and cash payments is related to cash flow, not revenue recognition.
Learning Objectives
- Comprehend the method through which different types of transactions, including cash receipts, cash disbursements, revenues, and expenses, are documented.
- Perceive the importance of revenue and expense accounts in evaluating business profit.