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French Equivalent: Comptabilité sur une base de caisse

Cash accounting records only cash payments/receipts and records them at the times these payments/receipts occur.

This method is widely used for certain business purposes. A practical advantage is the avoidance of problems connected with valuing non-monetary flows. Yet, cash accounting cannot be used generally for economic and national accounting as the times at which payments take place may diverge significantly from the economic activities and transactions to which they relate and it is these underlying activities and transactions that the SNA seeks to portray. Moreover, cash recording cannot be applied to the many non-monetary flows included in the SNA.

Source Publication:
System of National Accounts (SNA), 2008, 3.164.

Cross References:
Accrual accounting
Modified cash accounting


Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Thursday, April 4, 2013