Question

What is considered "cash"? How does this differ from income? Please explain Minimum word count of 100 words

Answer 1

Cash is also known as Money and its an legal tender (Currency/Coins) which are used for the Purchase of services, goods etc. It also includes the money lying in the bank account, Checks or or any other type of documents which can easily turned into the physical cash.

Cash refers to the amount of money currently or soon-to-be available. Income is the amount of money left over after all expenses are paid which means if someone is following accrual method of accounting Income doesn't always means that company has cash equivalent to the Profit. It can be more than or less than it.