What does "receipts not in accounts" refer to in taxable receipts?

The term "receipts not in accounts" generally relates to revenue or income that a business has received but has not formally recorded in its accounting books. This includes items that may impact the taxable receipts but do not appear in the regular income statement.

Taking goods for personal use fits this definition because when an owner or employee takes goods from the business without reflecting this transaction in the business's financial records, it represents a receipt that hasn't been accounted for in the books. Such actions can be considered a form of income since those goods have a value that could otherwise be sold, leading to taxable receipts.

In contrast, personal loans made to the business typically represent liabilities and do not generate income. Income from incidental sales is recorded as revenue and would not fall under "receipts not in accounts" because it should be reflected in the accounting records. Refunds received from previous expenses are not considered receipts as they represent a return of funds previously spent rather than new income or revenue. Thus, the correct answer is aligned with the concept of unrecorded personal use of business assets, which reflects potential income that affects tax obligations.