Cash accountingQuestion What is the cash method of accounting and how does it work?
Answer Cash method of accounting is a simpler accounting method. Income is reported when it is actually or constructively received and expenses are claimed when paid.
Actual receipt is the time when income is in your hands. Constructive receipt occurs when you have control over the income. 
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Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes
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