Cash basis of accounting

Accounting method in which incomes are recorded when cash is received and expenses are recorded when these expenses are paid. This method is totally opposite to accrual basis of accounting and it is against accounting GAAPs. Generally small firms use this method of accounting and government in some countries as well. Cash accounting is considered as bad practices because it doesn't reflect the true and fair view of business due to recording transactions after a gap of time waiting for the receipt or payment of cash. Cash basis of accounting is against core accounting concepts "accrual" and "matching"