Cash

Cash (Definition)

Cash refers to money in the form of currency or currency equivalents that can be accessed quickly.

Key aspects of cash include:

1. Most liquid form of asset
2. Includes physical currency, bank deposits, and certain short-term securities
3. Essential for day-to-day business operations and meeting short-term obligations
4. A key component of a companys working capital
5. Too much cash can be inefficient, while too little can lead to liquidity problems
6. Often used as a measure of a companys financial health and stability
7. Proper cash management is crucial for business sustainability and growth

Effective cash management is vital for maintaining business operations and financial flexibility.