LEDGER CASH Meaning and
Definition
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Ledger cash refers to the physical currency and coins that a business keeps on hand for conducting day-to-day transactions and making immediate payments. It represents the amount of cash available in a company's cash drawer, register, or any other designated safe or cash handling area.
In accounting, a ledger is a book or computer software where financial records and transactions are recorded. Similarly, ledger cash is a subsection of the general ledger that specifically tracks the company's cash activities. It serves as a central point for recording cash inflows, outflows, and balances.
Typically, ledger cash is used for smaller payments, such as giving change to customers, reimbursing employee petty cash expenses, or settling small bills without the need for electronic transactions. It enables businesses to have readily accessible funds for immediate needs, ensuring efficient operation and avoiding the delays associated with electronic transfers or checks.
Monitoring and reconciling ledger cash is crucial for maintaining accurate financial records and preventing any discrepancies or potential fraud. Regular cash counts and audits are necessary to ensure that the cash on hand matches the recorded balance in the ledger.
Overall, ledger cash represents the physical representation of a business's liquid assets and plays a vital role in facilitating daily monetary transactions and meeting immediate financial obligations.
Common Misspellings for LEDGER CASH
- kedger cash
- pedger cash
- oedger cash
- lwdger cash
- lsdger cash
- lddger cash
- lrdger cash
- l4dger cash
- l3dger cash
- lesger cash
- lexger cash
- lecger cash
- lefger cash
- lerger cash
- leeger cash
- ledfer cash
- ledver cash
- ledber cash
- ledher cash
- ledyer cash
Etymology of LEDGER CASH
The word "ledger" has its origins in the Middle English "leger" or "ledgere", which came from the Old English "læġer" meaning "a large gathering" or "a bed". Over time, its meaning evolved to refer to a book or register where transactions and accounts are recorded.
The word "cash" can be traced back to the Middle French "caisse", which meant "money box" or "chest". It later entered English through the Norman French language. The word's meaning expanded to encompass money and currency in general.
Therefore, the etymology of the phrase "ledger cash" is derived from the combination of "ledger", referring to the recording of financial transactions, and "cash", which denotes physical money or currency.
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