cash basis

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

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