Cash

The term Cash as it applies to accounting includes paper money, coins, checks, money orders and money on deposit with banks.  In general, an item is classified as cash if a bank will accept it for deposit.

Cash is classified as a current asset on the balance sheet of a company.  In fact, cash is the most liquid of all assets.  When determining whether or not an item is considered a current asset, it is the length of time to convert the item into cash that is the determining factor.