cash basis
- A bookkeeping strategy where revenues and expenses are recorded when actual money is received or paid, often referred to as the cash method
- The company decided to switch to a cash basis method for their accounting to more accurately track their payments.
- With cash basis accounting, a small business can avoid recognizing income until the cash is physically in their hands.
- Because of their variable income, the family decided to use the cash basis accounting method to manage their budget.
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