Definition of "Cash basis"
Cherry-Ann Bryant &
Kathy Kveberg, Real Estate Agent Florida Realty Investments
Kathy Kveberg, Real Estate Agent Florida Realty Investments
Method of accounting in which expenses are recorded when cash is paid and revenue is recorded when cash is received. The cash basis can be used for a service business. It can only be used for a company that has inventory if there is a risky customer and uncertain collection period. See also accrual method.
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