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Disbursement Basis
An accounting method in which expenditures and revenues are recorded when cash is actually disbursed or received, rather than when they are incurred.
Accrual Basis
An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.
GAAP Constraint
Guidelines that restrict or limit certain accounting practices under Generally Accepted Accounting Principles, to ensure fairness, consistency, and accuracy in financial reporting.
Disbursement Basis
Accounting method where expenses are recorded when cash is paid out, rather than when incurred.
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