Answer to Question #79095 in Accounting for madhu

Question

Differences between cash, revenue and expenditure. Provide an example of each category and which budget/s it is relevant to preparing.

Answer 1

Cash is money on hand or on bank accounts.
Cash flow refers to cash and may include other sources in addition to income from the sale of goods and services.
Revenue is the money that a company takes over from conducting its normal business operations.
At the same time, revenue is recognized by the first event, for example, goods are shipped, and money has not yet been received, but the income is already taken into account.
Also costs can be paid and accrued. For example, materials for production (paid expenses) have been paid and salaries have been paid to production personnel (accrued expenses)
Cash is shown in the balance sheet and in the statement of cash flows. The balance asset displays information about the availability of cash on the balance sheet date. The statement of cash flows shows the receipt and expenditure of cash from operating, investing and financing activities.
The company's revenues and expenses are displayed in the statement of financial results to determine the profit (loss) of the company.