CASH ACCOUNTING

Accounting technique in which revenue and expenses are recorded in the period these are actually received or paid. One of the two types of accounting, small businesses frequently use cash accounting since it is simpler and more straightforward, as well as it gives a clear picture of the money the business has on hand. But companies are mandated to use accrual accounting, the other accounting method, under generally accepted accounting principles. Also known as cash-basis accounting.

POPULAR TERMS

POPULAR ARTICLE