Basically, when the cash is received for a sale, it is recorded in the accounting books as a sale. This is in contrast with accrual accounting, where revenue and expenses are recorded when they are incurred.
Investment dictionary. Academic. 2012.
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cash accounting — 1) An accounting scheme for value added tax enabling a taxable person to account for VAT on the basis of amounts paid and received during the period of the VAT return. Relief for bad debts is automatically available under this scheme. In order to … Accounting dictionary
cash accounting — A method of accounting for VAT on the basis of cash paid and received, rather than on tax invoices issued and received. Use of the method is subject to conditions. HM Customs & Revenue Glossary * * * cash accounting cash accounting ➔ accounting * … Financial and business terms
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cash accounting — 1) An accounting scheme for value added tax enabling a taxable person to account for VAT on the basis of amounts paid and received during the period of the VAT return. Relief for bad debts is automatically available under this scheme. In order to … Big dictionary of business and management
cash accounting — Fin 1. an accounting method in which receipts and expenses are recorded in the accounting books in the period when they actually occur. See also accrual concept 2. in the United Kingdom, a system for Value Added Tax that enables the tax payer to… … The ultimate business dictionary
cash-flow accounting — CFA; = cash accounting A system of accounting that records only the cash payments and receipts relating to transactions made by a business, rather than when the money is earned or when expenses are incurred, as in accrual accounting. It is… … Accounting dictionary
cash-flow budget — cash budget; = cash flow forecast; = cash flow projection; = financial budget A budget that summarizes the expected cash inflows and the expected cash outflows of an organization over a budget period, usually prepared on a monthly basis. It is… … Accounting dictionary
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cash-flow projection — cash flow budget … Accounting dictionary
accounting — ac‧coun‧ting [əˈkaʊntɪŋ] noun [uncountable] 1. ACCOUNTING JOBS the usual word for the profession of accountancy in the US 2. ACCOUNTING the work of keeping a company s financial records, recording its income and expenses, and its business deals:… … Financial and business terms