The definition of cash
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Video Overview
There is a saying that profit is an opinion, but cash is a fact. This is very true as a business may be very profitable on paper, but still be on the verge of sequestration due to a liquidity problem. This is why a statement of cash flows is included in a company’s set of financial statements and is a very useful tool in determining the liquidity of the business. A managerial accountant needs to be able to mange cash efficiently, and be able to make use of the tools available. But to begin with, we need to have a good understanding of what cash really is, therefore, this tutorial is entitled – the definition of cash.
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