Cash Basis Accounting
/ˈkæʃ ˈbeɪs əˌkaʊntɪŋ/
Definitions
- (n.) An accounting method recognizing revenues and expenses only when cash is actually received or paid.
Small businesses often use cash basis accounting to simplify tax reporting.
Forms
- cash basis accounting
Related terms
See also
Commentary
Cash basis accounting is typically simpler but may not comply with GAAP for larger entities.
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.