What is Cash in Hand ?
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kavita123
karan
Manoj
7 posters
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- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:54 am
"Cash on hand" is a term used to describe the current liquid assets of a company or individual.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:54 am
This includes actual cash as well as accessible balances in checking, savings, money market, and other such accounts.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:55 am
In some cases, available credit funds may also be included.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:55 am
"Cash on hand" is a term used to describe the current liquid assets of a company or individual. This includes actual cash as well as accessible balances in checking, savings, money market, and other such accounts.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:55 am
In some cases, available credit funds may also be included. These assets differ from total assets, which additionally include things such as equity in real estate and equipment, and can include invoiced monies as well.
- karan
- Posts : 11270
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Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:55 am
The amount of cash immediately available to a person or business can play a major role in both purchase and credit decisions.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:56 am
The main point of difference between cash on hand and other types of assets is the immediacy of access.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:56 am
The funds generally do not need to be physically present on the premises to be considered "on hand."
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:56 am
As long as the business or individual has access within a fairly immediate time frame, the funds are considered part of this category.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:56 am
Further, funds considered "cash" do not have to be physical money. Electronic funds, such as those present in bank accounts, also count. In addition, the funds in credit accounts such as credit cards or home equity lines of credit may sometimes be included, provided they can be accessed quickly.
- kavita123
- Posts : 10734
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Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:57 am
payment for goods and services in cash rather than by cheque or other means, typically as a way of avoiding the payment of tax on the amount earned.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:58 am
Any asset considered a part of cash on hand must be liquid. This means that it does not require the sale or transfer of a physical or intangible item in order to access its full or partial worth.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:58 am
For this reason, equity in a home, physical items of value, and stocks or shares are not considered to be either "cash" or "on hand."
- kavita123
- Posts : 10734
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:58 am
For a new company, the annual budget is among the first things you should set up - that is, if you expect your company to last for at least a year. There are two main components - cash flow and expenses.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:58 am
Creditors sometimes require proof of liquid assets before extending a loan or before setting fees and interest rates. In some cases, a certain amount of such funds is required in order to access credit funds.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:58 am
For example, an individual or business seeking to purchase an automobile or a piece of real estate must often produce a cash down payment.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:59 am
In these cases, available credit is not considered cash because the offer is conditional upon the current credit balance.
- karan
- Posts : 11270
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Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:59 am
Businesses and individuals may also need to monitor cash on hand in order to manage cash flow.
- karan
- Posts : 11270
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Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:59 am
This means ensuring that there is enough available cash or credit to cover expenses at all times.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 11:59 am
It might also mean maintaining an adequate contingency fund so that unexpected, urgent expenses can be paid without interrupting business or personal operations.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 12:00 pm
You should always make sure that you have enough cash on hand to take advantage of a good deal if it comes.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 12:00 pm
Business Place, Inc. used cash on hand to make a purchase that required immediate payment, and planned to pay for a larger expense through bank financing.
- karan
- Posts : 11270
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 12:01 pm
Scott made sure that his company always had a certain level of cash on hand. This cash was used for investing and for purchasing additional equipment for his business.
- Abhishek
- Posts : 12935
Join date : 2019-01-07
Re: What is Cash in Hand ?
Fri Jan 11, 2019 12:02 pm
Cash flow, Financial and accounting concept. Cash flow results from three major groups of activities: operating activities, investing activities, and financing activities.
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