receipts and expenditures

English Definition

The paired presentation of the cash flowing into and out of an entity over a period, reflecting an accounting logic on a cash rather than an accrual basis. This is the foundational frame in public budgeting and fund accounting; in project finance the receipts-and-expenditures projection is the very ground on which the debt-service coverage ratio (DSCR) is built. The critical subtlety is that debt service is determined by actual cash movement, not accounting profit: even a project that looks profitable on an accrual basis can experience a cash squeeze in periods when receipts lag expenditures, so the waterfall is constructed to bridge that timing gap through reserve accounts — a coverage ratio computed on accrual earnings can read comfortably while the operating account runs dry.