Cash: Definition, Different Types, and History
Cash is legal tender or coins that can be used to exchange goods, debt, or services. Cash in its physical form is the simplest, most broadly accepted and reliable form of payment. Although cash typically refers to money in hand, the term can also be used to indicate money in banking accounts, checks, or any other form of currency that is easily accessible and can be quickly turned into physical cash.Cash in its physical form is the simplest, most broadly accepted and reliable form of payment, which is why many businesses only accept cash. Checks can bounce and credit cards can be declined, but cash in hand requires no extra processing.In finance and banking, cash indicates the company's current assets, or any assets that can be turned into cash within one year. A business's cash flow shows the net amount of cash a company has, after factoring in both incoming and outgoing cash and assets, and can be a good resource for potential investors.Cash is legal tender—currency or coins—that can be used to exchange goods, debt, or services.