less than 1 minute read

Cash Basis

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

For INCOME TAX purposes, taxable income is computed under cash basis accounting as the difference between income received and expenses paid out within the tax year.

Cash basis accounting is not the same as ACCRUAL BASIS accounting.

Additional topics

Law Library - American Law and Legal InformationFree Legal Encyclopedia: Robert Lee Carter - Further Readings to Child Molestation