Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 54

Cash receipts versus revenues During the month of April, Simpson Co. had cash receipts from customers of $170,000. Expenses totaled $156,000, and accrual basis net income was $42,000. There were no gains or losses during the month.

Required:

a. Calculate the revenues for Simpson Co. for April.

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b. Explain why cash receipts from customers can be different from revenues.

Step 1 of 4

a) Revenue for Simpson company during the month of April: