Title: What is Cash Accounting? Definition of Cash Accounting, Cash Accounting Meaning - The Economic Times
Headings: Definition of 'Cash Accounting'
Finance
Definition of 'Cash Accounting'

Content: A Company’s balance sheet as well as income statements should be studied carefully to come to a conclusion. Cash level might be increasing for a company because it might have sold some of its assets, but that doesn’t mean the liquidity is improving. If the company has sold off some of its assets to pay off debt then this is a negative sign and should be investigated further for more clarification. If the company is not reinvesting cash then this is also a negative sign because in that case it is not using the opportunity to diversify or build business for expansion. Read More
Definition of 'Cash Accounting'
Definition: Cash accounting is the methodology under which transactions are recorded when they actually happen. For example, income will be recorded when the company receives cash and expenses are recorded when they are actually paid out and not when the bill is raised. Description: There are two basic type of accounting methodologies – one is cash accounting and the other is accrual accounting. Both systems have their own benefits.