Cash - GCSE Business Definition

Cash refers to physical money in the form of coins and banknotes that is used to buy goods and services.

Cash is considered the most liquid form of asset, meaning it can be easily spent or used to settle debts immediately. It is essential for the day-to-day operations of a business, allowing for quick transactions. However, relying heavily on cash can have downsides, such as security risks. Understanding cash management is crucial for students, as it plays a vital role in budgeting, financial planning and resource allocation in businesses.