MLchartDataset catalogue

Cash method of accounting

Term · Law · MLC-T-LAW-000881

An accounting method that recognizes revenues when cash is received and expenses when cash is paid out. This approach contrasts with the accrual method, which recognizes income and expenses when they are earned or incurred, regardless of when cash changes hands. Many small businesses and individuals use the cash method for its simplicity in tracking financial transactions.

Table 1. Record
IdentifierMLC-T-LAW-000881
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-000881",
  "term": "Cash method of accounting",
  "field": "Law",
  "definition": "An accounting method that recognizes revenues when cash is received and expenses when cash is paid out. This approach contrasts with the accrual method, which recognizes income and expenses when they are earned or incurred, regardless of when cash changes hands. Many small businesses and individuals use the cash method for its simplicity in tracking financial transactions.",
  "url": "https://mlchart.com/terminology/law/cash-method-of-accounting/"
}

Record 692 of 5,445 in Law terminology (MLC-0107). Request the full dataset.