cash method of accounting
An accounting method where income is included when it is actually received and deductions claimed when expenses are actually paid.
Definition from Nolo’s Plain-English Law Dictionary
A method of accounting in which income is accounted for when actually received (not, for instance, when an order is taken) and expenses are reported when actually paid (not when liability for paying them is incurred, such as making an order). Compare: accrual method of accounting
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm
