{"id":1886,"date":"2023-08-22T15:19:06","date_gmt":"2023-08-22T12:19:06","guid":{"rendered":"https:\/\/akaunting.com\/hc\/?post_type=glossary&#038;p=1886"},"modified":"2024-09-03T12:30:43","modified_gmt":"2024-09-03T09:30:43","slug":"cash","status":"publish","type":"glossary","link":"https:\/\/akaunting.com\/hc\/terms\/cash\/","title":{"rendered":"Cash"},"content":{"rendered":"<div id=\"akaunting-terms\">\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Cash?<\/strong><\/h2>\n\n\n\n<p class=\"entry-paragraph\">Cash is a company&#8217;s money that is readily available to pay for expenses or invest. Cash is typically held in bank accounts but can also be held in the form of coins, currency, or money orders.<\/p>\n\n\n\n<p class=\"entry-paragraph\">Cash is an essential asset for companies because it allows them to operate smoothly and efficiently.<\/p>\n\n\n\n<p class=\"entry-paragraph\">For example, if a company needs to pay its employees or suppliers, it can use cash. Cash can also be used to invest in new opportunities or to acquire other businesses.<\/p>\n\n\n\n<p class=\"has-text-align-center\"> <a class=\"entry-links\" href=\"https:\/\/akaunting.com\/blog\/what-is-operating-cash-flow-and-how-to-calculate-it\">What is operating cash flow, and how to calculate it<\/a><\/p>\n\n\n\n<p class=\"entry-paragraph\">Cash is typically recorded on the balance sheet as a current asset in accounting.<\/p>\n\n\n\n<p class=\"entry-paragraph\">The cash balance on the balance sheet is important because it provides a snapshot of the company&#8217;s financial health. A healthy company will have a strong cash balance, allowing it to meet its financial obligations and invest in its future.<\/p>\n\n\n\n<p class=\"has-text-align-center has-text-color has-link-color wp-elements-f03bbdaedb2a8a8966bd6fc3b09eff38\" style=\"color:#6ea152\"><a href=\"https:\/\/akaunting.com\/invoicing-software\">Invoicing Software for Small Businesses<\/a><\/p>\n\n\n\n<p class=\"entry-paragraph\"><strong>Cash as a method of accounting<\/strong> is also called cash-basis accounting. It is a simple way of recording transactions that only recognizes revenues when cash is received and expenses when cash is paid.&nbsp;<\/p>\n\n\n<\/div>","protected":false},"menu_order":0,"template":"","letter":[23],"class_list":["post-1886","glossary","type-glossary","status-publish","hentry","letter-c"],"acf":[],"_links":{"self":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/types\/glossary"}],"version-history":[{"count":6,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1886\/revisions"}],"predecessor-version":[{"id":2973,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/glossary\/1886\/revisions\/2973"}],"wp:attachment":[{"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/media?parent=1886"}],"wp:term":[{"taxonomy":"letter","embeddable":true,"href":"https:\/\/akaunting.com\/hc\/wp-json\/wp\/v2\/letter?post=1886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}