# Cash basis

> Cash basis — Recognizing revenue and expense only when cash moves. Not GAAP for any entity — it is a special purpose framework (AICPA AU-C 800), and for tax a method IRS Pub. 538 and IRC §448 limit by entity type and gross receipts.

Source: https://lopifi.com/glossary/cash-basis
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is cash basis?** In accounting, cash basis means recognizing revenue and expense only when cash moves. Not GAAP for any entity — it is a special purpose framework (AICPA AU-C 800), and for tax a method IRS Pub. 538 and IRC §448 limit by entity type and gross receipts.

## Words this system refuses for it

- simple accounting

- **Category:** Foundations
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- **Related:** expense, revenue, basis