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Simple English definitions for legal terms

cash method of accounting

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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

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TGM
18:39
@texaslawhopefully: alas, haven’t even gotten an interview (applied around thanksgiving)
18:39
Yeah I would delay as long as you have plausible deniability
TGM
18:40
I actually do have a transcript issue that registrar needs to resolve, should I say that
TGM
18:41
(Course marked as Incomplete that’s supposed to be removed)
TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
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im premed idk why im here
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we’re like cool and sexy and fun I get it
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true i love ur user
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thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
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windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
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try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
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I'm sober lol
Dkk
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Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
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