Accounting / July 18, 2018 / Willow Mccoy
Sales is the exchange of products or services for money, either paid for now or in the future. When your business provides a product to a customer in exchange for consideration, the business has made a sale and can report that sale on its financial statements. Sales form the beginning of the income statement, and all expenses are subtracted from the total amount of sales to show the profit from the business.
In accounting, journals are used to record similar activities and to keep transactions organized. One of the journals is a cash receipts journal, a record of all of the cash that a business takes in. It is reserved specifically for activities that involve receiving cash. In most businesses, there are cash receipts of some type. You may sell items or provide services that people pay for with cash, which may range from food or books to massages or even a ride in a taxicab.
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