Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cash method of accounting

Read a random definition: vinculum juris

A quick definition of cash method of accounting:

The cash method of accounting is a way to keep track of money coming in and going out. With this method, you only record transactions when you actually pay or receive money. This is different from the accrual method, which records transactions as soon as you owe or earn money, even if you haven't paid or received it yet. The cash method is easier to use, but it doesn't show all the money you owe or are owed. That's why big businesses and some people have to use the accrual method instead.

A more thorough explanation:

The cash method of accounting is a way of keeping track of money that comes in and goes out of a business. It is commonly used by individuals and small businesses. With this method, transactions are only recorded when the actual payment is made or received. This is different from the accrual method, which records transactions as soon as a debt or income is earned, even if the payment has not been made yet.

For example, let's say a small business sells a product to a customer on credit. With the cash method, the sale would not be recorded until the customer actually pays for the product. On the other hand, with the accrual method, the sale would be recorded as soon as the product is delivered, even if the customer has not paid yet.

The cash method is simpler to use because it only requires recording transactions when money actually changes hands. However, it can be misleading because it does not reflect any obligations that have not yet been paid. This is why the Internal Revenue Service (IRS) requires most large businesses and some individuals to use the accrual method.

cash flow statement | cash surrender value

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
dkk that is heavy stuff
snow
10:01
jesus dk
BulbasaurNoLikeCardio
10:01
Winter is tattoo season because you are less likely to be in the sun exposing the healng tattoos, you dont go swimming or tanning in winter either so you don't miss out on the fun stuff of summer
Guys
Do u think I will hear from au today
snow
10:02
homely i hope we do!
Yes is the only correct answer ty
Dkk
10:02
Lmfao, it's just part of life in the military. Couple years ago a guy I knew got crushed by a tree. Is what it is.
snow
10:02
@BulbasaurNoLikeCardio: thats smart. i dont know anything about tattoo care lol
babycat
10:02
Also piercings are better to get in the winter
snow
10:02
dk i feel like you would do great in criminal defense
soap
10:02
you good Dk?
snow
10:03
i got my nose pierced last thanksgiving and it got infected @babycat
Dkk
10:03
Probably could just shock the jury into sideing with me lol
babycat
10:03
I mean bc you can’t go swimming with a piercing
Dkk
10:03
Ahh yeah, just hate that word. Trauma. Hate how people use it.
babycat
10:03
So you want to do it in winter when you won’t be missing it. Sorry abt ur nose though
BulbasaurNoLikeCardio
10:04
@snow: healing is super easy it takes like a week to get through the bad part but being in the sun or going in water is a no no so if you get it in the summer that is two weeks at least of no summer fun while winter it doesnt matter
snow
10:04
i think the piercer just did a bad job. my ex and i's piercings both got infected
babycat
10:04
maybe you’re spiritually aligned like that
Dkk
10:04
Gross, piercings.
snow
10:04
@babycat: i was living the bob dylan life man. smoking cigs with a nose piercing while drinkin coffee. have been chasing that high since
BulbasaurNoLikeCardio
10:04
I have been wanting a piercing just to feel what it is like
snow
10:05
@BulbasaurNoLikeCardio: that makes sense. idk im just nervous of infections
snow
10:05
i have my ears pierced but thats it
babycat
10:05
I have a couple types of ear piercings and navel
BulbasaurNoLikeCardio
10:05
Only dirty people get infections from tattoos, higher chance of an allergy to the ink. Just go to a legit shop
Dkk
10:06
I just don't like the idea of the ink in my lymphnodes. That scares me.
good morning everyone
BulbasaurNoLikeCardio
10:06
I wanna try a nose peircing to see how it feels. Need a piercer friend who wants to practice on me cause I want to experience it but not keep it
LSD+ is ad-free, with DMs, discounts, case briefs & more.