Cash Basis:
Gross income is recognized when cash is received.
Cash and marketable securities divided by current liabilities. See
[n] - a method of accounting in which each item is entered as payments are received or made
noun a method of accounting in which each item is entered as payments are received or made
- Method of bookkeeping by which REVENUES and EXPENDITURES are recorded when they are received and paid. (See OTHER COMPREHENSIVE BASIS OF ACCOUNTING.)