cash basis

cash basis
cash basis see basis 2

Merriam-Webster’s Dictionary of Law. . 1996.

cash basis
An accounting convention. In contrast to the accruals basis, tax is sometimes charged on income on a cash basis. This means that the income is not taxable until received or, as in the case of Schedule A, until receivable. Where deductions are allowed on a cash basis, the deduction is only allowed in the period in which payment occurs. This is generally the case with charges on income of companies.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


cash basis
A method of accounting that considers only money actually received as income and only money actually paid out as expense.

Dictionary from West's Encyclopedia of American Law. 2005.


cash basis
A method of accounting that considers only money actually received as income and only money actually paid out as expense.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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Look at other dictionaries:

  • cash basis — Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Bloomberg Financial Dictionary * * * cash basis ˈcash ˌbasis noun [singular] 1. ACCOUNTING a system of accounts in which the profit… …   Financial and business terms

  • Cash Basis — A major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out. This contrasts to the other major accounting method, accrual accounting, which requires income to be recognized in a… …   Investment dictionary

  • cash-basis method — See also cash method. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • Cash Basis Taxpayer — 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. The rules for cash basis taxpayers are… …   Investment dictionary

  • cash basis accounting — Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Bloomberg Financial Dictionary * * * cash basis accounting UK US noun [U] (also cash accounting, cash basis) ► ACCOUNTING a method… …   Financial and business terms

  • cash basis accounting — The *recognition of *revenues and *expenses in line with related *cash movements. Cash basis accounting is not permissible for large organizations under most systems of *Generally Accepted Accounting Principles, which prefers an *accruals basis… …   Auditor's dictionary

  • Cash Basis Loan — A loan where interest is recorded as earned when payment is collected. Ordinarily, interest income is accrued on loans, since regular payment of both principal and interest is assumed. However, in the case of nonperforming loans (loans gone bad) …   Investment dictionary

  • cash basis — noun a method of accounting in which each item is entered as payments are received or made (Freq. 1) • Ant: ↑accrual basis • Hypernyms: ↑accounting, ↑accounting system, ↑method of accounting * * * noun : a meth …   Useful english dictionary

  • cash basis — Reporting income for taxation when cash or property is actually or constructively received and taking deductions in the year cash or property is paid or transferred. IRC § 451(a) …   Ballentine's law dictionary

  • cash basis — commercial transactions involving only cash (as opposed to credit) …   English contemporary dictionary

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