Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-7

Revenue

Revenue is the sum that a business earns when it provides its customer with its product, whether that product is a good, a service or some combination of both. In most cases, revenue is recorded on the accounts when its source transaction is complete and when the sum in question has a determinable numerical value. In the case of sales made on credit, the revenue is recorded so long as there is no reasonable chance that the debtor will default on the debt.

Cash Receipt

Cash receipt is an increase in the business’s cash and cash equivalents and is sometimes also called a cash inflow. Cash receipt can be either an increase to the business’s cash or an increase to its cash equivalents. Cash equivalents are certain financial instruments with terms less than three months in length. Cash equivalents can be converted to cash with minimal risk and are grouped together with cash because they are the most liquid assets available to the business.

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