What is Cash?

1 . Introduction - Cash as a transaction medium

Cash is frequently associated with money in societies . Indeed it is one of the most common mediums through which goods and services are exchange for . In this respect cash holds an importance to society due to its potential to transfer goods and services . In the forthcoming sections an examination of the role of money in the business environment will be conducted

Role of Money

The purchasing power capability of money in the business environment led to the development of a considerable number of procedures

in the accounting and finance field . Cash is frequently regarded as the lifeblood of the organisation . Without it the organisation will perish in a few weeks . Cash will affect both the organisation internally and external individuals /entities that are linked with the company . The individuals /entities affected by cash and the influence of such element are described below (Pike et al . 1999 , pp 7-8

Customers - as already pinpointed in section 1 cash serves as a very common medium through which goods and services are exchange . Therefore the client can conduct a sale with the business through cash

Suppliers - it is true that it is common practice that credit terms are set between suppliers and the organization . However , the possibility that the final payment is conducted in cash is still very high . The organization can also perform cash purchases and again cash serves as the medium through which the goods are bought from the supplier

Employees - the staff of the...