Basic Accounting Terms (Part 3) – Receipts & Expenditure Explained by CA Devesh Thakur In accounting, money does not just flow into a business, it also flows out. But not all inflows and outflows are of the same nature. That is why we classify them into Receipts and Expenditure. Receipts: Money received by a business is called receipts. They are of two types: Revenue Receipts – Regular and recurring in nature. Example: Sales, commission, rent received. A shopkeeper selling goods worth ₹50,000 is