Definition of cash
1 : ready money
2 : money or its equivalent (such as a check) paid for goods or services at the time of purchase or delivery
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Origin and Etymology of cash
modification of Medieval French or Old Italian; Medieval French casse money box, from Old Italian cassa, from Latin capsa chest — more at case
Other Economics Terms
cash
Definition of cash
: being a method of accounting that includes as income only what has been received and as expenses only those paid — compare accrual
First Known Use of cash
1622
Other Business Terms
cash
Definition of cash
transitive verb
1 : to pay or obtain cash for cash a check
2 : to lead and win a bridge trick with (a card that is the highest remaining card of its suit)
Examples of cash in a Sentence
The store wouldn't cash the check.
He cashed his paycheck at the bank.
First Known Use of cash
1811
Other Economics Terms
cash
Definition of cash
cash
1 : any of various coins of small value in China and southern India; especially : a Chinese coin with a square hole in the center
2 : a unit of value equivalent to one cash
Illustration of cash
Origin and Etymology of cash
Portuguese caixa, from Tamil kācu, a small copper coin, from Sanskrit karṣa, a weight of gold or silver
Financial Definition of CASH
cash
How It Works
Although there is some leeway for judgment in particular situations, common examples of cash at the corporate level typically include bank accounts and money market funds. Marketable securities and Treasury bills are easily converted into cash and are thus usually called "cash equivalents." The Financial Accounting Standards Board requires companies to establish policies concerning which types of short-term, highly liquid investments are treated as cash equivalents.
The balance sheet shows the amount of cash at a given point in time; the statement of cash flows explains the change in cash over time.
Why It Matters
The amount of cash a company holds is very important and has implications for the company's overall operating strategy. For instance, companies with high amounts of cash are better able to get through hard times when sales are low or expenses are particularly high. However, companies with a lot of cash on hand are often takeover targets because their excess cash essentially helps buyers finance their purchase.
High cash reserves also could indicate that management has not figured out how to best deploy the cash, but for capital-intensive companies, high cash reserves could signal that the company is "saving up" to make some significant purchases.
It is important to note that there is an opportunity cost to holding cash; that cost is the return on equity that company could have earned by investing the cash in a new product or expanding business.
Many theories exist about how much cash certain kinds of companies should hold, and the current ratio and the quick ratio help investors and analysts compare company cash levels in relation to certain expenses.
CASH Defined for English Language Learners
cash
Definition of cash for English Language Learners
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: to give or get cash for (a check)
CASH Defined for Kids
Definition of cash for Students
1 : money in the form of coins or bills
2 : money or its equivalent (as a check) paid for goods at the time of purchase or delivery
Definition of cash for Students
cashed
;cashing
: to give or get cash for The bank refused to cash his check.
Law Dictionary
cash
Legal Definition of cash
1 : ready money
2 : money or its equivalent (as a check) paid for goods or services at the time of purchase or delivery
cash against documents
: a sight draft in exchange for a bill of lading agree that the buyer will pay cash against documents
Learn More about cash
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See words that rhyme with cash Thesaurus: All synonyms and antonyms for cash Spanish Central: Translation of cash Nglish: Translation of cash for Spanish speakers Britannica English: Translation of cash for Arabic speakers
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