Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Bloomberg Financial Dictionary
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cash basis ˈcash ˌbasis noun [singular]
1. ACCOUNTING a system of accounts in which the profit or loss for a particular period of time is based on the amounts of money received and paid out during that period, rather than on goods or services provided during that period:
• Some firms are allowed to pay VAT on a cash basis: VAT need only be paid when the invoice bearing VAT has actually been paid.
2. COMMERCE if you receive goods or services on a cash basis, you must pay for them as soon as you receive them rather than paying later:
• If hotel guests have no credit cards they are usually asked to prepay for their stay on a cash basis.
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cash basis UK US noun [U]
► ACCOUNTING CASH BASIS ACCOUNTING(Cf. ↑cash basis accounting)
Financial and business terms. 2012.