Cash Basis

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Related to Cash basis accounting: Accrual basis accounting

Cash Basis

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.

References in periodicals archive ?
Whoever warned against counting chickens before they've hatched was clearly a proponent of cash basis accounting.
The Government now proposes to phase out cash basis accounting in 1999/2000 - a year later than originally announced - and has extended the three-year "catch up" period to ten years.
Justification for adopting cash basis accounting for OPEB was based on assumptions that the number of retirees covered was relatively small, the costs were insignificant and the continuation of benefits was discretionary.
Categories: Financial Management, Accounting procedures, Accounting standards, Appropriations, Audit reports, Cash basis accounting, Federal regulations, Financial analysis, Financial management, Financial statement audits, Financial statements, Independent counsels, Internal controls, Reporting requirements
The Company stated the earnings reflect a change to accrual accounting from cash basis accounting.
Cash basis accounting, which is employed by governments in some of the world's largest and most interconnected economies, lacks transparency and accountability.