It is received. 

The invoice is paid. 

It is earned. 

Cash is collected. 

Cash basis. 

Deferred basis. 

Mixed basis. 

Accruals basis. 

Ordinary income. 

Capital

Exempt income. 

Non-taxable. 

Division 90. 

Division 70. 

Division 40. 

Division 30. 

Revenue assets held for the purpose of manufacturing, exchanging, or selling in a business.

Fixed assets used in the production process.

Capital assets held for long-term investment.

Non-taxable assets.

Goods purchased for resale. 

Raw materials used in manufacturing. 

Finished goods held for sale. 

Machinery used in the production process. 

Hybrid basis. 

Cash basis. 

Deferred basis. 

Accruals basis. 

Ordinary income. 

Capital. 

Exempt from tax. 

Non-assessable, non-exempt income. 

Capital gains. 

Exempt income. 

Ordinary income. 

Non-assessable, non-exempt income. 

Always ordinary income in nature. 

Non-taxable. 

Either ordinary income or capital, depending on the nature of the loss. 

Always capital in nature.