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Cash Basis
(redirected from Cash basis accounting)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

A method of accounting that considers only money actually received as income and only money actually paid out as expense.

For Income Tax purposes, taxable income is computed under cash basis accounting as the difference between income received and expenses paid out within the tax year.

Cash basis accounting is not the same as Accrual Basis accounting.



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Cash basis accounting is basically managing your business finances like you do a checkbook -- money only exists once it is deposited, and expenses only exist once money is spent.
Categories: Financial Management, Accounting standards, Auditing procedures, Auditing standards, Cash basis accounting, Financial analysis, Financial management, Financial records, Financial statement audits, Financial statements, Internal audits, Internal controls, Strategic planning, Voluntary compliance
Students in the control group were given the traditional lecture delivery of the same concepts, cash basis accounting and accrual basis accounting.
 
 
 
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