modified cash basis

Definition

The bookkeeping practice of recording sales and expenses on an accrual basis for long-term assets and a cash basis for short-term assets.

Use modified cash basis in a sentence

You must always remember to make a note of every sale when you are using a modified cash basis system.

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We have instituted a modified cash basis of accounting whereby fixed assets purchased for less than $500 are expensed irrespective of their useful life.

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When Joe started looking at the books kept on a modified cash basis, he realized that he was unhappy with this system and wanted Janice to keep a more complete record.

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modified book value Modified Dietz Method