Cash Basis


Definition of "Cash basis"

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.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Escrow Account

An account into which payment is made for particular expenses to assure that money will be available ...

American Council Of Life Insurance

Association of life insurance companies focusing on legislation and public relations that may affect ...

Abusive Tax Shelter

The Internal Revenue Service considers overstating expenses, such as depreciation, or other illegal ...

Fee Simple Absolute

An estate limited absolutely to an owner and his or her heirs in perpetuity and without limitation, ...

Trustee, Terminated Plan

One named under provisions of the employee retirement income security act of 1974 (erisa) for a term ...

Attribution

Also called constructive ownership. A situation where the tax law assigns to one taxpayer the owners ...

Related Real Estate FAQ

What Do I Need To Know About Term Life Insurance?

Provides financial protection for a limited, specified period of time, at a lower cost than permanen ...

What Is A APR Loan?

This APR Calculator can be used to estimate the Annual Percentage Rate for a loan based on input par ...

What Is A Point?

A point is equal to 1 percent of a loan amount. Lenders charge points in exchange for lowering the i ...

What Do I Need To Know About Homeowners Insurance?

It is where you live and where your possessions are. Chances are, it\'s your asset. But more than po ...

What Is Homeowners Insurance?

Homeowners insurance is an insurance policy that combines personal liability insurance and hazard in ...

Do I Need Flood Insurance?

Over 90% of all presidential-declared disasters in the United States are flood related. Leveling for ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

5 signs of house foundation problems Why Use a Real Estate Agent? Is it better to buy or sell a home first Getting Ready to Sell? Don't make these DIY Mistakes! Short Sale Homes

FAQ

What type of a home is a condominium? What do I need to know about Individual Health Insurance? Why should I use a real estate agent? What is a debt-to-income ratio? What are discount points?