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Cash Accounting

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Global Encyclopedia of Public Administration, Public Policy, and Governance

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Synonyms

Cash basis of accounting; Cash flow accounting; Flow of financial resources accounting and cash basis

Definition

Cash accounting is a method of recognition of the elements of financial statements based on the practice of recording revenues when cash is received and recording expenditures when cash is paid. Revenues and expenditures as well as assets and liabilities are therefore recognized according to the financial cash flows associated to them, regardless of the moment those are earned or owed.

Introduction

Cash accounting is a method of recognition of the elements of financial statements that can be used for financial reporting purposes. It can be adopted alternatively with other two recognition methods such as Accrual Accounting and Modified Accrual Accounting, both based on the accruals concept, according to which income and expenses are recorded in the period in which earned or incurred, regardless of the timing of the associated cash flows.

The choice of the proper...

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References

  • International Accounting Standards Board (2010) Conceptual framework for financial reporting 2010. International Accounting Standards Board, London

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  • International Accounting Standards Board (2015) Conceptual framework for financial reporting. Exposure Draft ED/2015/3. International Public Sector Accounting Standards Board, London

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  • International Public Sector Accounting Standards Board (2014) The conceptual framework for general purpose financial reporting by public sector entities. In: International federation of accountants. New York

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  • International Public Sector Accounting Standards Board (2015) Handbook of international public sector accounting pronouncements, 2015 edn, vol 1. New York

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  • Price Waterhouse Coopers (2013) PwC Gobal Survey on accounting and financial reporting by central governments. PwC, Paris

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Author information

Authors and Affiliations

  1. Department of Economy and Social Sciences, Faculty of Business Administration, Universitat Politècnica de València, Valenica, Spain

    José Manuel Vela

Authors
  1. José Manuel Vela
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Corresponding author

Correspondence to José Manuel Vela .

Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, Florida, USA

    Ali Farazmand

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© 2016 Springer International Publishing Switzerland

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Vela, J.M. (2016). Cash Accounting. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2272-1

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  • DOI: https://doi.org/10.1007/978-3-319-31816-5_2272-1

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  • Publisher Name: Springer, Cham

  • Online ISBN: 978-3-319-31816-5

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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