In accrual accounting, revenue does not necessarily equal cash...

In accrual accounting, revenue does not necessarily equal cash receipts. This is because you can make a sale on credit, and receive the cash at a later point on time (hence revenue now but cash received later).

For example, if CPH made sales on the last few days of the Q1, it will be included in revenue but they may have payment terms of anywhere from 30-90 days which would mean they’ll receive the cash in Q2.

Hope this helps,

CappMan