Cash Accounting
Definition of 'Cash Accounting'An accounting method where receipts are recorded during the period they are received, and the expenses in the period in which they are actually paid. |
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Investopedia explains 'Cash Accounting'Basically, when the cash is received for a sale, it is recorded in the accounting books as a sale. This is in contrast with accrual accounting, where revenue and expenses are recorded when they are incurred. |
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