Dictionary of Procurement Terms

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Search Results: 1-1 of 1 result for “Cash Basis Accounting”

  • Cash Basis Accounting

    A financial management tool that records income when cash is actually received, and records expenses when cash is paid out. Cash basis accounting does not conform with Generally Accepted Accounting Principles (GAAP) and is generally not considered a good financial management tool because there is a time differential between recording the cause of the action (sale or provision of a service) and its results (payment or receipt of money).

    See Also: Accrual Basis Accounting