cash basis

Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Bloomberg Financial Dictionary

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cash basis ˈcash ˌbasis noun [singular]
1. ACCOUNTING a system of accounts in which the profit or loss for a particular period of time is based on the amounts of money received and paid out during that period, rather than on goods or services provided during that period:

• Some firms are allowed to pay VAT on a cash basis: VAT need only be paid when the invoice bearing VAT has actually been paid.

2. COMMERCE if you receive goods or services on a cash basis, you must pay for them as soon as you receive them rather than paying later:

• If hotel guests have no credit cards they are usually asked to prepay for their stay on a cash basis.

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cash basis UK US noun [U]
ACCOUNTING CASH BASIS ACCOUNTING(Cf. cash basis accounting)
on a cash basis — Cf. on a cash basis

Financial and business terms. 2012.

Look at other dictionaries:

  • cash basis — see basis 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cash basis …   Law dictionary

  • Cash Basis — A major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out. This contrasts to the other major accounting method, accrual accounting, which requires income to be recognized in a… …   Investment dictionary

  • cash basis — noun a method of accounting in which each item is entered as payments are received or made (Freq. 1) • Ant: ↑accrual basis • Hypernyms: ↑accounting, ↑accounting system, ↑method of accounting * * * noun : a meth …   Useful english dictionary

  • cash basis — Reporting income for taxation when cash or property is actually or constructively received and taking deductions in the year cash or property is paid or transferred. IRC § 451(a) …   Ballentine's law dictionary

  • cash basis — commercial transactions involving only cash (as opposed to credit) …   English contemporary dictionary

  • cash basis — a method of recording income and expenses in which each item is entered as received or paid. Cf. accrual basis. * * * …   Universalium

  • cash basis — /kæʃ beɪsɪs/ noun a method of preparing the accounts of a business, where receipts and payments are shown at the time when they are made (as opposed to showing debts or credits which are outstanding at the end of the accounting period). Also… …   Dictionary of banking and finance

  • cash basis — Fin the bookkeeping practice of accounting for money only when it is actually received or spent …   The ultimate business dictionary

  • cash-basis method — See also cash method. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • Cash Basis Taxpayer — A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor deduct promissory notes as payments. The rules for cash basis taxpayers are… …   Investment dictionary

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