What is the definition of cash in financial accounting?

In financial accounting, cash is defined as monetary forms such as bills and coins that are readily available for transactions and maintaining value. Cash is the most liquid asset a company can have, meaning it can easily be used for purchasing goods and services, paying expenses, or fulfilling obligations. This definition encompasses not just physical currency but also amounts held in bank accounts, which can be quickly accessed.

The other options represent different types of assets or investments. Investments held short-term for resale refers to marketable securities or stocks that a company buys with the intention of selling them quickly for a profit, not cash itself. Long-term receivables from customers are amounts owed to the company by its customers, indicating sales made on credit but not yet received in cash. Intangible assets, such as goodwill or patents, are non-physical assets that can appreciate in value, but they do not represent cash or cash equivalents. Understanding what constitutes cash is fundamental for accurate financial reporting and management of a business's resources.