Cash receipts versus revenues During the month of April, Riley Co. had cash receipts from customers...
Homework Answers
a.Revenues for Riley co. for April.
| expenses | 624,000 |
| add:net income | 218,000 |
| revenues | $842,000 |
b.cash receipts from customers can be different from revenues:
This is due to credit period offered to customers.
Revenues are the actual sales made both on credit and cash basis, during the current accounting period.
Cash receipts during current period can be even for the sale made in the previous accounting period.
All the credit sale made during the current period may not be realised due to the credit period offered to customers.
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Cash receipts versus revenues During the month of April, Riley Co.
had cash receipts from customers...
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