Definitions for "Cash method of accounting"
An accounting method where income is reported when it is received (as opposed to when it is earned) and expenses are reported when they are paid (as opposed to when they are incurred).
One of the two most common methods of accounting, the other being the accrual method defined elsewhere in this glossary. Under the cash method of accounting, income is reported in the tax year actually or constructively received and expenses are deducted in the tax year paid.
An accounting method that uses the amount actually paid or received in determining the income or loss of the company.
The practice of recording the value of assets in terms of their cost.