Cash Accounting

A system of accounting that recognizes revenue and expenses in the order in which they are received or made. For example, if a company receives $200 in revenue on Tuesday, it must record $200 in revenue on Tuesday. Cash accounting contrasts with accrual accounting, which matches expenses with the revenue it generates, regardless of when each one occurs. Cash accounting can result in a different tax liability from accrual accounting. For this reason, regulations require different companies to use different accounting methods; for example, companies carrying inventory are not allowed to use the cash accounting method.

单词	cash accounting
释义	Cash Accounting Cash Accounting A system of accounting that recognizes revenue and expenses in the order in which they are received or made. For example, if a company receives $200 in revenue on Tuesday, it must record $200 in revenue on Tuesday. Cash accounting contrasts with accrual accounting, which matches expenses with the revenue it generates, regardless of when each one occurs. Cash accounting can result in a different tax liability from accrual accounting. For this reason, regulations require different companies to use different accounting methods; for example, companies carrying inventory are not allowed to use the cash accounting method.
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