INCOME AND REVENUE PART 2

I have EARNED the income when I

• receive the cash

• have done the job/service

I rent out my house at $2000 a month. I received cash $4000 for March and April. Rental income for March =

• $4000

• $2000

I have done the job BUT have not received the cash of $100. Income =

• $0

• $100

I have received the cash BUT not earned yet

• income RECEIVABLE

• income

  RECEIVED IN ADVANCE

I have EARNED the income BUT cash not received yet

• income

  RECEIVABLE

• income RECEIVED IN ADVANCE

income RECEIVABLE =

• current

  ASSET

• current

  LIABILITY

income RECEIVED IN ADVANCE =

• current

  ASSET

• current

  LIABILITY

I received cash $4000 for rental income. This included a $500 which is received in advance.

Rental income =

• $4000

• $4500

• $3500

I received cash of $2000 for rental income. There was $500 yet to be received for rental income. Rental income =

• $2000

• $2500

• $1500

• $500

Commission income EARNED is $800. There was a commission RECEIVABLE of $50. How much CASH was RECEIVED?

• $850

• $750