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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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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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