What is a 'Receipt'

A receipt is a written acknowledgment that something of value has been transferred from one party to another. In addition to the receipts consumers typically receive from vendors and service providers, receipts are also issued in business-to-business dealings, as well as stock market transactions. For example, the holder of a futures contact is generally given a delivery instrument, which acts as a receipt, in that it can be exchanged for the underlying asset when the future contract expires.

BREAKING DOWN 'Receipt'

In addition to showing ownership, receipts can also be important for other reasons. For instance, many retailers insist that a customer have a receipt to exchange or return items purchased from them, while others demand that a receipt - generally issued within a certain timeframe - be produced for product warranty purposes. Receipts can also be important for tax purposes.

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