What is cash?

Cash is a state in which a legal tender is found and that can be used to pay off a public or private debt or comply with a obligation financial

The most common way to refer to cash is to talk about money.

In business terms, when we speak of cash, we are not referring to the most liquid current assets or to any asset that can become effective in less than a year. That is, how much money can the company have in a short period of time.

El Cash Flow of the company shows the amount of money that a company has, after having correctly registered all the movements that directly affect this element of the balance.

What is meant by cash in a company?

The cash or cash of a company is made up of

  • Legal tender money you own
  • The amount you have in checking or savings accounts
  • Uncashed checks

Companies are not required to have a minimum amount of cash by law, but it is always advisable to establish a strategy with minimum amounts that allow the company to deal with payments quickly.

The amount of cash should be reflected in the balance sheet as shown in the General Accounting Planwhich includes the regulations on company accounts.




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