cash method of accounting

Definition of "cash method of accounting"
  1. A bookkeeping strategy where revenues are recognized when cash is received, and expenses are recognized when they are paid
How to use "cash method of accounting" in a sentence
  1. Small businesses often use the cash method of accounting since it is simpler to manage.
  2. The cash method of accounting helped the company monitor its immediate financial status.
  3. His accountant suggested switching to the cash method of accounting to avoid unnecessary complexities.
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