A method of accounting based on cash receipts and disbursements. Contrast accrual method.
A method of accounting in contrast to the accrual method. Under the cash method, income is recorded only when the cash is actually received, without regard to when it was earned. Likewise, expenses are recorded only when actually paid, without regard to when they were actually incurred.
A method of tax accounting requiring the taxpayer to report as income all cash and property actually or constructively received during the tax year and, as deductions, all cash disbursements actually made during the tax year (except for payments that will benefit the taxpayer for a period longer than 12 months, such as prepaid rent).
The form of accounting used by most individuals where income is reported in the year it is received, but expenses are deducted in the year that you pay taxes. For example, if you remodel a kitchen and bill the client in December 2004, but do not receive payment until January 2005, the funds are counted as income in 2005 and not when the work was done in 2004.
The accounting method where all items of income are reported in the year that you actually or constructively receive them. You deduct all expenses in the year you actually pay them. This is the method most individual taxpayers use.
The accounting method in which all items of income are reported in the year you actually or constructively receive them and you deduct all expenses in the year you actually pay them. Most individual taxpayers use this method.
An accounting method under which income is subject to tax when actually received and deductions are allowed when actually paid.
An accounting method under which you report your income in the year in which you actually or constructively receive it. You generally deduct your expenses in the year you pay them.
reporting income one receives during the year, usually deducting expenses in the year you pay them.
A method of accounting where expenses are deducted when they are actually paid and revenue is reported when it is actually or constructively received. Also see “Accrual method.
One of two main accounting methods for determining when a transaction has tax significance. The cash method says that a transaction is taxed when payment is made. This method is used by most individuals. (See "Accrual method (or accrual basis).")
An accounting method, based on actual cash moving in and out of the company over a given period. See accrual method.
of accounting - With this method, you report income in the year it is actually received. Similarly, expenses are deducted in the year they are actually paid. Farmers, fishers, and certain salespeople who work on commission may use the cash method.