CASH BALANCE Meaning and
Definition
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Cash balance refers to the total amount of money held or available in a person's or organization's cash account at a given point in time. It represents the financial position of an entity in terms of the amount of cash or cash equivalents readily accessible for immediate use.
In personal finance, cash balance can be understood as the sum of money held in a checking or savings account that is readily available for daily expenses, bill payments, or any immediate financial needs. This includes physical currency, such as notes and coins, as well as funds accessible through payment cards, electronic transfers, or other means.
For businesses, cash balance refers to the total amount of money held by an organization in its cash account, which includes cash on hand, petty cash, and funds held in bank accounts. Cash balance is a crucial indicator of a company's liquidity, demonstrating its ability to meet immediate financial obligations or invest in short-term opportunities. It is essential for operational activities, including paying suppliers, covering expenses, and meeting payroll obligations.
Analyzing and managing cash balances is a critical aspect of financial management, as it helps individuals and organizations monitor their liquidity, cash inflows and outflows, and make informed financial decisions. By maintaining an appropriate cash balance, one can ensure stability, meet financial obligations, and even pursue investment opportunities when the time is right.
Common Misspellings for CASH BALANCE
- xash balance
- vash balance
- fash balance
- dash balance
- czsh balance
- cssh balance
- cwsh balance
- cqsh balance
- caah balance
- cazh balance
- caxh balance
- cadh balance
- caeh balance
- cawh balance
- casg balance
- casb balance
- casn balance
- casj balance
- casu balance
- casy balance
Etymology of CASH BALANCE
The word "cash" originated from the Old French word "caisse", meaning money box or chest, which in turn came from the Latin word "capsa", meaning box or chest. Over time, "caisse" was adapted into various languages, including English, where it became "cash" referring to money in the form of coins or banknotes.
On the other hand, "balance" has its roots in the Latin word "bilanx", which means having two scales. This term evolved into the Old French word "balance" and entered the English language around the 13th century. It originally referred to a device used for weighing, but gradually gained the meaning of equilibrium or stability.
When combined, "cash balance" refers to the amount of money or funds a person or organization has on hand at a specific point in time.
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