Definition: Cash is the most liquid asset and vital for the solvency of a company.

From an accounting perspective, cash is the most liquid asset a company can have. A cash balance indicates that a company has cash on hand and can use that cash in whichever way it intends to.
Handing over cash
Cash on hand is the most liquid (usable) asset that a company can have

Cash in accounting

Cash is classified as a current asset on the Balance Sheet and is therefore increased on the debit side and decreased on the credit side.

Cash will usually appear at the top of the current asset section of the balance sheet because these items are listed in order of liquidity.
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Synonyms
  • Cash Balance
  • Current Asset
Related Words
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