Question

How to calculate net income from cash basis of accounting?

Answer 1

Answer:

Under the cash-basis method, you may not record any expenses that you have been billed for but have not paid. Subtract your total cash-basis expenses from your cash-basis income. The result is your net income using the cash -basis accounting method.

Answer 2

Answer:

One can calculate net income from cash basis of accounting by subtracting all the expenses paid from the revenue received ( excluding the outstanding expenses and income )