About Lesson
A cash receipt is any amount of cash (physical or bank) received by a company.
Examples:
1.Cash received from customers for sale of goods
2.Cash received from customers for performing services
3.Bank loans
4.Grants
Qs: We’ll start with an easy one – what is a cash receipt?
The process for receiving and recording each type of cash receipt is different.
Today, we will focus on the revenue cycle, from selling a good or service to a customer to the subsequent collection of their cash payments, as this is the most common and most frequent form of cash receipt.
As we have already discussed, controls over cash transactions are very important because cash is relatively easy to steal and is easy to convert to other assets.
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