SURPLUS CASH Meaning and
Definition
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Surplus cash refers to the extra or excess funds that remain after an entity or individual has paid all its financial obligations and expenses. It represents the positive difference between the total amount of money received and the total amount spent. Surplus cash can be seen as a financial cushion or reserve that is available for use or investment.
In the context of businesses, surplus cash can arise from various sources such as profits, non-operating income, or proceeds from divestitures. Companies may accumulate surplus cash to ensure financial stability, to fund expansion plans, or to take advantage of potential investment opportunities. It can be held in liquid assets such as cash in hand, bank deposits, or short-term investments.
For individuals, surplus cash primarily consists of the disposable income left over after paying for essential expenses, including housing, food, utilities, and other financial commitments. This extra money can be utilized for various purposes such as savings, investments, paying off debts, or indulging in discretionary spending.
Having surplus cash is advantageous as it provides a buffer against unexpected expenses and allows for financial flexibility and freedom. Additionally, surplus cash can be invested in income-generating ventures, such as stocks, bonds, or real estate, generating further wealth over time.
Overall, surplus cash represents a financial surplus or an excess of funds available beyond what is required for immediate obligations, making it a valuable asset for both businesses and individuals.
Common Misspellings for SURPLUS CASH
Etymology of SURPLUS CASH
The etymology of the word "surplus" can be traced back to the Latin word "superplusus", which is derived from "super" meaning "above" or "beyond" and "plus" meaning "more". "Superplusus" gradually developed into "surplus" in Middle English, retaining the connotation of excess or extra.
The word "cash" has its origins in the Old French term "caisse" meaning "money box" or "case". It further derives from the Latin word "capsa", which also refers to a box or chest. Over time, "caisse" evolved into "cash" and began to specifically describe money or currency.
When combined, "surplus cash" refers to the excess or extra money beyond what is needed or expected. This term is commonly used to describe funds or resources that go beyond the required amount for a particular purpose or investment.
