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Cash Basis of Accounting
An accounting method where revenues and expenses are recognized only when cash is received or paid.
Accrual Basis of Accounting
Accrual basis of accounting is a method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.
Defined Benefit Pension Plan
A type of pension plan where the benefits that a retiree will receive are calculated based on factors such as salary history and duration of employment.
Service Cost
The expense recognized by an employer for the portion of projected benefit obligations earned by employees in the current period in a defined benefit plan.
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