New to accounting... what is a cash clearing account. What is it used for in conjunction with an accounts receivable accounts:(

New to accounting... what is a cash clearing account. What is it used for in conjunction with an accounts receivable accounts


Deposits received from the customers daily are credited to the cash clearing account in order to perform daily bank reconciliations.
The clearing account is credited as deposits are made and cleared at the end of each month by debiting the account :)

How to calculate net income?

How to calculate net income?

Revenue - expenses = net income