Definitions for "Cash basis"
The bookkeeping practice of recording sales and expenses only when cash is actually received or paid out, as opposed to accrual basis. Generally cash basis bookkeeping is simpler than accrual basis bookkeeping, but makes securing financing more difficult. also called cash method of accounting. see also modified cash basis.
Also called cash accounting is a method of accounting for transactions of a business. These transactions are shown in the income statement only when cash is paid and when cash is received.
The accounting practice of recording sales and exp... Add a comment