basis of accounting
Definition
Method used to determine when revenues and expenses (with associated assets and liabilities) are recognized in the accounts of a firm, and reported in its financial statements. In accrual basis accounting, for example, revenues are recognized when earned and expenses are recognized when incurred, whether or not any cash is received or paid. In cash basis accounting, however, revenues and expenses are recognized only when cash is received or paid, irrespective of the timing of actual sales or purchases.
basis of accounting is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
basis of accounting appears in these other terms: obligation basis of accounting, actuarial basis of accounting
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