DEA Extramural Glossary: SeeAlso

Cash or Cash Equivalent Basis: The basis whereby receipts are recorded when received and expenditures are recorded when paid, without regard to the accounting period in which the receipts are earned or the costs are incurred. "Cash" generally refers to payment by cash, checks, or electronic funds transfers. "Cash equivalent" refers to the use of an instrument or process that creates a substitute for cash. For example, when the government issues a debt instrument of any kind in satisfaction of claims, the transaction is recorded as simultaneous outlays and borrowing—the outlays when the debt instrument is issued, not when it is redeemed.
Quoted from GAO's "A Glossary of Terms Used in the Federal Budget Process".; See: Bases of Budgeting

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