A method of accounting where transactions are recorded and revenues and expenses recognized when cash is received or cash is paid out.
This is the accounting system in which cash transactions are recorded and reports drawn from actual payments made into and out of your company. (See Accrual Basis Accounting)
a method of accounting in which changes in the condition of an organization are recognized only in response to cash transactions whether they be payments or receipts.
Accounting method that recognizes and records income when cash is received and expenses when cash is paid.
An accounting method that records sales and expenses when the transfer of cash occurs.
A method of accounting that reports income when it is actually received and expenses when they are actually paid. This is in contrast to accrual basis accounting, which reports income when it is earned (although not necessarily yet received) and expenses when incurred (even if bills are paid later).