What Is a Modified Cash Basis?

Cash basis (CashBasis) is based on whether the payment was actually received or paid during the period as the standard for determining the current period's income and expenses. Adopting this standard to deal with accounting matters, all income actually received during the period, regardless of whether the income should be attributed to the current period, is treated as income for the current period; similarly, any expenses actually paid during the period Regardless of whether the fee should be attributed to the current period, all periods that have not been received and paid in the current period are treated as expenses in the current period. ^[1]