Summary from 2015 in the field of Business Administration - Accounting, Financial Statements, Taxes, Grade: 2, Language: German. Abstract: The cash-basis accounting is a significant chapter in accounting. This document describes it in detail and addresses all specifics. The cash-basis accounting is a method of determining profit for a calendar year in a business. It records all business income and expenses that have either been received or paid out in cash or through bank accounts and are documented in the cash-basis accounting. This principle is fundamentally referred to as the inflow-outflow principle. There are only a few exceptions to this principle, including the acquisition and production costs of buildings and certain assets in current assets. The exception in these cases is that they are only recorded when they are removed from the business.