Modified Cash Basis

An accounting method that combines elements of the two major accounting methods, the cash method and the accrual method. The cash method recognizes income when it is received and expenses when they are paid for, whereas the accrual method recognizes income when it is earned (for example, when the terms of a contract are fulfilled) and expenses when they are incurred. The modified cash basis method uses accruals for long-term balance sheet elements and the cash basis for short-term ones.

Because both accounting methods have limitations, a business may use a modified cash method to develop what it feels is a more accurate picture of its finances. While the modified cash method may be used for internal purposes, this method does not comply with the Generally Accepted Accounting Principles that companies must follow when preparing their financial statements.


Investment dictionary. . 2012.

Look at other dictionaries:

  • modified cash basis — Fin the bookkeeping practice of accounting for short term assets on a cash basis and for long term assets on an accrual basis …   The ultimate business dictionary

  • Modified Accrual Accounting — An accounting method commonly used by government agencies that combines accrual basis accounting with cash basis accounting. Modified accrual accounting recognizes revenues when they become available and measurable and, with a few exceptions,… …   Investment dictionary

  • Other comprehensive basis of accounting — (OCBOA) in United States accounting refers to a system of accounting other than GAAP. As explained in the Journal of Accountancy,[1] Under Statement on Auditing Standards (USA) No. 62, Special Reports, an OCBOA is any one of A statutory basis of… …   Wikipedia

  • Other Comprehensive Basis of Accounting — °Other Comprehensive Basis of Accounting (OCBOA) in the United States accounting, refers to a system of accounting other than GAAP. As explained in The Journal of Accountancy in an online issue: [http://www.aicpa.org/PUBS/JOFA/oct2003/ratcliff.htm… …   Wikipedia

  • Oberthur Cash Protection — Type Private Industry technology Headquarters Levallois Perret …   Wikipedia

  • Accounting methods — Cash basisCash basis accounting is a method of bookkeeping that records financial events based on cash flows and cash position. Revenue is recognized when cash is received and expense is recognized when cash is paid. In cash basis accounting,… …   Wikipedia

  • PIFRA — Project to Improve Financial Reporting and Auditing (PIFRA)IntroductionThe Govt. of Pakistan took an initiative to address the shortcomings of the financial reporting system and to ensure good governance. The IMF carried out a survey in… …   Wikipedia

  • на наличной основе, наличными — Бухгалтерский учет: кассовый метод бухгалтерского учета, при котором прибыль учитывается только после получения наличных средств, а расходы после выплаты наличных средств. Напротив, при использовании метода начислений (accrual method) прибыль… …   Финансово-инвестиционный толковый словарь

  • Auditor's report — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • government budget — Forecast of governmental expenditures and revenues for the ensuing fiscal year. In modern industrial economies, the budget is the key instrument for the execution of government economic policies. Because government budgets may promote or retard… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.