The words "Income" and "Expense" are beguilingly simple;
everyone thinks they know what they mean.
The money I get is income, the money I spend is
expense, right? Right! However, there are subtlties.
The time that you make your income is ofen different than when you
actually get the money: to ease the recording of these types of
transactions, the concept of 'accounts payable' and 'accounts
receivable' has been invented. Click on that link to go there. This
section deals with the more basic recording of incomes and expenses.