Cash - Financial definition
Concise definition of the term cash
Cash refers to physical currency, such as coins and banknotes, as well as funds available in bank accounts that can be accessed immediately for transactions.
Comprehensive definition of the term cash
In a financial context, cash represents the most liquid form of assets, readily available for use in day-to-day operations, transactions, and emergencies. Businesses maintain cash reserves to meet short-term obligations, take advantage of immediate opportunities, and ensure operational liquidity. For example, companies often hold cash to cover payroll, settle debts, or invest in quick-turnaround projects. In investment terms, cash holdings are considered a safe haven during market volatility, providing stability and flexibility to investors.