What is included in gross receipts?

Gross receipts encompass the total income received by a business from its operations, which includes all forms of revenue. This clearly integrates both cash and property received from various transactions, such as sales or exchanges of goods and services. It gives a complete picture of a business's financial performance by accounting for all incoming resources, regardless of their form.

The inclusion of property received is significant because it reflects transactions beyond just cash sales, demonstrating a broader scope of income generation. This holistic approach is crucial for accurate financial reporting and tax purposes, ensuring that all resources are considered when calculating a business's financial health.

Other options, however, do not adequately capture the complete definition of gross receipts. Cash sales alone would limit the understanding of income, while net sales after returns focus solely on revenue without accounting for all incoming resources. Additionally, employee contributions are not considered gross receipts, as they do not represent income generated from the business's operational activities.