Cash Basis
/ˈkæʃ ˌbeɪsɪs/
Definitions
- (n.) An accounting method recognizing revenues and expenses only when cash is received or paid.
The company's financial statements were prepared on a cash basis to simplify tax reporting.
Forms
- cash basis
Related terms
See also
Commentary
Cash basis is often chosen by small businesses for simplicity but may not comply with all regulatory accounting requirements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.