Cash receipts refer to the money received by a business or individual, typically in exchange for goods or services. This can include cash payments, checks, or electronic transfers. Cash receipts are important for tracking income and managing finances, as they provide a record of transactions. Businesses often record cash receipts in a cash receipts journal, which helps in maintaining accurate financial records. Proper documentation of cash receipts is essential for accounting purposes and can assist in preparing financial statements, such as the income statement and balance sheet.