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.
The statutory accounting principles of the past did not always provide a consistent and complete basis for accounting and reporting," Neil D.
Some company managements have suggested preparing financial statements using the tax basis for accounting for leases, but using GAAP for other items.