CASH BASIS OF ACCOUNTING Definition

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CASH BASIS OF ACCOUNTING is the accounting basis in which revenue and expenses are recorded in the period they are actually received or expended in cash. Use of the cash basis generally is not considered to be in conformity with generally accepted accounting principles (GAAP) and is therefore used only in selected situations, such as for very small businesses and (when permitted) for income tax reporting. See also Accrual Basis.

Learn new Accounting Terms

TARGET MARGIN is the desired profit on each sale; used to determine the selling price where the average total cost is known.

REVERSE REPO see REVERSE REPURCHASE AGREEMENT.

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