Cash Basis Taxpayer

What Does Cash Basis Taxpayer Mean?
A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor deduct promissory notes as payments.

Investopedia explains Cash Basis Taxpayer
The rules for cash basis taxpayers are essentially the same as for cash basis businesses. Cash basis accounting is the alternative to accrual basis accounting.

Related Terms

Accrual Accounting
Cash Accounting
Cash Basis
More Related Terms

Related Links

Operating Cash Flow: Better Than Net Income? - Differences between accrual accounting and cash flows show why net income is easier to manipulate.
Accounting Rules Could Roil The Markets - FAS 142 is an accounting rule that changes the way companies treat goodwill. Be aware of the impact it has on reported earnings to avoid making bad investment decisions.
Understanding Pro-Forma Earnings - These figures can either shed light on a company's performance or skew it. Find out why.
The Essentials Of Cash Flow - Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself.
What are the generally accepted accounting principles for inventory reserves?
The Rise Of The Modern-Day Bean Counter - Follow accounting from its roots in ancient times to the profession we now depend on.

Rate this Term: Your Rating: Overall Rating: Vote Now!