Accounting Basis

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Accounting Basis

Any of several systems for recognizing revenue and expenses for accounting purposes. In the United States, the two main bases for accounting are cash accounting and accrual accounting. The cash accounting basis recognizes revenue and expenses in the order in which they are received or made. The accrual basis, on the other hand, matches revenue with the expenses that generated that revenue. Using a different accounting basis can have tax implications.
References in periodicals archive ?
Due to the planned sale of Miratech, EDB ErgoGroup can no longer consider the companies in the Ukraine on a combined basis for accounting purposes.
7, Using Cash Flow Information and Present Value in Accounting Measurement, provides a framework for using future cash flows as the basis for accounting measurements.
Furthermore, Telesoft will continue to account for its GoodNet subsidiary on a consolidated basis for accounting purposes.