Which of the following can be a cash receipt for a business?

Get ready for the Leaving Certificate Business Test. Prepare with flashcards and multiple choice questions complete with hints and explanations to help you succeed. Ace your exam now!

Cash receipts for a business refer to the inflow of cash that results from its operating activities. The correct answer highlights a fundamental aspect of revenue generation in a business. Cash earned from selling goods represents income received directly from customers in exchange for products. This cash inflow is essential as it reflects the core activity of the business, which is to sell goods or services, ultimately contributing to its financial viability and growth.

In contrast, rent paid by tenants typically involves cash outflows for the business rather than inflows. Cash paid to suppliers signifies payments made for purchasing inventory or raw materials, which again constitutes an outflow of cash rather than a receipt. Cash used for advertising represents expenditures incurred to promote the business, not cash received, thus also misleadingly characterizing the nature of a cash receipt.

By focusing on cash earned from selling goods, it becomes clear why this choice distinctly qualifies as a cash receipt, embodying the revenues that contribute to the overall financial health of the business.

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