Accounting question

[Michael DeBusk]

On Jun 27, 2016 04:46, "Guus Bonnema" <gbonnema at xs4all.nl> wrote:

> You wouldn't treat tax refunds as (delayed) income? As tax decreases
income, tax refund increases income albeit delayed?

I do not. Tax doesn't decrease income any more than any other expense
decreases income. Expenses decrease assets.

> P.S. I might be misunderstanding the term "a/r", taking it to mean you do
not regard this as income.

Accounts Receivable are asset accounts that track income you've earned but
have not received. Most individuals won't use them, as cash-based
accounting makes more sense for them; Accounts Receivable and Accounts
Payable are used in accrual accounting, which businesses tend to use.