Which term refers to money received by a business?

• A. Transaction
• B. Cash Receipts
• C. Cost
• D. Maker

Answer: (B)

Money received by a business is recorded as cash receipts. These are the inflows of cash that happen when customers pay invoices, when the business takes out loans, or when owners contribute capital. They increase the cash on hand and reflect the actual inflow of money.

A transaction is a broader term for any exchange that affects accounts and can involve cash receipts, but not all transactions are cash receipts (they could be payments, accruals, or non-cash events). Cost represents an expense or the value of resources consumed, not money coming in. Maker isn’t relevant to this concept; it refers to the person who creates a negotiable instrument, not to money received by the business.