What is included under cash in accounting?

Cash in accounting encompasses a broad range of items that can be easily converted to cash or are already in the form of cash. This includes not only physical currency like coins and bills but also checks and money orders that can be deposited or cashed, as well as bank deposits in checking or savings accounts that are readily available.

The inclusion of coins, currency, checks, and money orders represents the various forms of liquid assets the business may possess. Furthermore, bank deposits are also considered cash because they can be accessed for transactions, making them an essential part of liquid cash management in accounting. Therefore, this comprehensive view of cash provides a complete understanding of what constitutes cash in accounting practices, ensuring that all available resources for immediate use are accounted for.