What is the meaning of cash dasis please explain in detail..

Cash Basis of Accounting - Cash basis of accounting is a method in which the transactions are recognised only when cash is received or paid. It does not record the transaction merely on the basis of their occurrence. It means, under this method of accounting, cash receipts or cash payments are recorded in the books only when they are actually received or paid. In short, it does not take into consideration any accrued incomes or expenses.

Advantages:-
i) It is easy and simple method.
ii) It provides clear and accurate picture of cash flow.
iii)This method is suitable for the businesses who do not want to ascertain their results on accrual basis.
iv) It is not an appropriate method of ascertaining results of operation because advance incomes or expenses are also taken into account.