cash

noun (1)

\ˈkash

Definition of cash

(Entry 1 of 4)

1 : ready money

2 : money or its equivalent (such as a check) paid for goods or services at the time of purchase or delivery

cash

adjective

Definition of cash (Entry 2 of 4)

: being a method of accounting that includes as income only what has been received and as expenses only those paid — compare accrual

cash

verb

cashed; cashing; cashes

Definition of cash (Entry 3 of 4)

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)

cash

noun (2)

plural cash

Definition of cash (Entry 4 of 4)

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

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Examples of cash in a Sentence

Verb

The store wouldn't cash the check. He cashed his paycheck at the bank.

First Known Use of cash

Noun (1)

1593, in the meaning defined at sense 1

Adjective

1622, in the meaning defined above

Verb

1811, in the meaning defined at sense 1

Noun (2)

1598, in the meaning defined at sense 1

History and Etymology for cash

Noun (1)

modification of Middle French or Old Italian; Middle French casse money box, from Old Italian cassa, from Latin capsa chest — more at case

Noun (2)

Portuguese caixa, from Tamil kācu, a small copper coin, from Sanskrit karṣa, a weight of gold or silver

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The first known use of cash was in 1593

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More Definitions for cash

cash

noun

Financial Definition of cash

What It Is

Cash is an asset that is in currency form.

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.

Source: Investing Answers

cash

verb