Cash is a legal tender that can be used to exchange goods, debt, or services. It is one of the most important assets of a business. Almost all the entity's transactions ultimately result in either receipt or payment of cash. Cash usually includes cash on hand, cash in bank, and cash fund.
Currencies and coins are money in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.
Money order is a certificate usually issued by governments and banking institutions, that allows the stated payee to receive cash-on-demand.
• Bank drafts refers to a negotiable instrument that can be used as payment that is guaranteed by the issuing bank. The total amount of the draft is drawn from the requesting payer's account—their bank account balance decreases by the money withdrawn from the account—and is usually held in a general ledger
account until the payee cashes the draft.
Petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements.
Revolving fund is a fund that is continually replenished as withdrawals are made such as a working capital fund.
Change fund is a set amount of money used to make change for customers who pay for purchases with cash.
