cash basis
1
5.3
- noun
- /kæʃ ˈbeɪsɪs/
- Specialized
:
base de efectivo
- Most noncredit federal subsidies are measured on a cash basis, and for the purposes of measuring stimulus, their sizes and costs are generally equated to the annual cash outflows that are reported in the federal budget.
Examples
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When working on a cash basis, companies only record transactions when cash is exchanged.
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Just as no one ever washed a rental car (as the saying goes), farmers who lease their land on an annual cash basis don't have the incentive to make optimal long-term investments in soil health.
Blog text (21) -
You can't live on a cash basis forever, you know.
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Which is why I refuse to get a license and do all my business on a strictly cash basis.
Blog text (15) -
So you don't run a deficit of any kind in your personal or business life; everything is on a cash basis.
Blog text (2) -
Items bought and sold are usually done on a cash basis, and that is where this site thrives, in facilitating local commerce.
Blog text (21) -
Many of these small businesses operated on a cash basis, and nearly all of them lacked any signage to indicate what they were or even that they were there.
Academic text (2003) -
Before this special provision, cash-basis taxpayers holding zero-basis food inventory received no deduction for the contribution of the food.
Academic text (2018) -
Most administrative costs are omitted from these subsidy estimates (but accounted for elsewhere in the budget, on a cash basis).
Academic text (2016) -
Many small businesses operate on a cash basis to simplify their accounting processes.
Antonyms
- Specialized
A way to record income and costs when they happen, not when cash is paid or received
How Immediate
- Specialized
1
5.3
- Specialized
Surface Forms
Morphology
The phrase is compositional: 'cash' modifies 'basis' to indicate a method/starting point that is based on cash, so a learner who knows 'cash' and 'basis' can infer it refers to an accounting method tied to actual cash receipts/payments. Although the term is technical in accounting, the meaning follows directly from the constituents and similar constructions occur cross-linguistically, making it readily derivable.
Etymology
The term cash basis comes from small shopkeepers who kept simple books and only wrote an entry when they had the cash in hand. So, cash basis means 'to record income and expenses only when money actually changes hands'.