Cash-based Accounting Flashcards
Cash-based Accounting
This type of accounting is basic and simple to operate. It records incoming funds and outgoing funds, and only accounts for money that has actually been paid out or received.
cash-based accounting method
Transactions are recorded in the cashbook on the
date they are paid or received.
cash-based accounting method
Transactions made in
cash by check or on a credit or debit card are all included
cash-based accounting method
Credit transactions are accounted for only when they are
paid or received.
cash-based accounting method
In-kind donations of goods or services aren’t counted, because they are
not a physical exchange of money.
cash-based accounting method
Incoming cash is called a
receipt and cash going out is a payment.
Many smaller NGOs though, do use a halfway-house method where they use cash-based accounting for
much of the year, then convert the figures to accruals-based accounting at the end of the year, with the help of an outside expert.
The key difference between cash accounting and accruals accounting is
how they deal with the timing of cash and credit transactions.
CASH
Skill level:
basic bookkeeping
CASH
Transaction types:
cash only
CASH
Main book of account:
cashbook
CASH
Non-cash transactions:
no
CASH
Accounting system:
single entry
CASH
Assets and liabilities:
no
CASH
Reports:
receipts & payments report
