{"id":1648,"date":"2023-09-21T13:17:11","date_gmt":"2023-09-21T13:17:11","guid":{"rendered":"https:\/\/mudabicara.com\/en\/?p=1648"},"modified":"2023-09-21T13:17:11","modified_gmt":"2023-09-21T13:17:11","slug":"what-is-a-cash-account-this-is-the-meaning-examples-and-benefits-for-business","status":"publish","type":"post","link":"https:\/\/mudabicara.com\/en\/what-is-a-cash-account-this-is-the-meaning-examples-and-benefits-for-business\/","title":{"rendered":"What is a Cash Account? This is the meaning, examples and benefits for business"},"content":{"rendered":"<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The cash account is one of the accounts most often encountered when preparing financial reports, because every transaction will definitely involve the use of cash, whether in metal, paper or other forms. <\/span><span style=\"vertical-align: inherit;\">In the financial sector, this term has several meanings. <\/span><span style=\"vertical-align: inherit;\">In this article, we will discuss in full the meaning of cash accounts obtained from several literatures. <\/span><span style=\"vertical-align: inherit;\">Discussion of cash accounts often involves other terms, namely accounting, bookkeeping and cash itself.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">You may already be familiar with cash in business. <\/span><span style=\"vertical-align: inherit;\">The definition of cash in accounting is cash paid directly without debt. <\/span><span style=\"vertical-align: inherit;\">However, cash itself has a broader meaning. <\/span><span style=\"vertical-align: inherit;\">This is one of the most liquid asset classes, where the higher the nominal value, the higher the liquidity characteristics.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Meanwhile, based on general understanding, cash can be considered as a place to store money or to pay and receive money. <\/span><span style=\"vertical-align: inherit;\">You can say that cash is cash that is used to exchange debts, goods or services. <\/span><span style=\"vertical-align: inherit;\">But when it comes to accounting, it means something completely different. <\/span><span style=\"vertical-align: inherit;\">Cash accounts are a form of accounting that is based on recording actual transactions that occur.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So, in this article, the discussion will focus more on understanding cash accounts in accounting. <\/span><span style=\"vertical-align: inherit;\">Not only that, we will also discuss the types, examples and benefits for businesses that use them.<\/span><\/span><\/p>\n<pre><strong><span style=\"color: #ff0000;\">Read Also :\u00a0<\/span><\/strong><strong><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" title=\"Permalink to: What is a Liability? Definition, Types and Examples of Questions\" href=\"https:\/\/mudabicara.com\/en\/what-is-a-liability-definition-types-and-examples-of-questions\/\" rel=\"bookmark\">What is a Liability? Definition, Types and Examples of Questions<\/a><\/span><\/strong><\/pre>\n<h2><span id=\"Pengertian_Akun_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Understanding Cash Accounts<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">A cash account is an account that contains details of money coming in and money going out. <\/span><span style=\"vertical-align: inherit;\">This is recorded with the aim of showing the remaining cash that must exist or the cash account. <\/span><span style=\"vertical-align: inherit;\">Another definition of a cash account is an account used to record various activities in the form of changes in nominal currency due to receipts and expenditures. <\/span><span style=\"vertical-align: inherit;\">Accounts involving cash and the like are classified as cash accounts, such as demand deposits, checks, etc., which can be used according to the function of money. <\/span><span style=\"vertical-align: inherit;\">Although term deposits are not included in the cash account, they are also very beneficial for business.<\/span><\/span><\/p>\n<h2><span id=\"Pengertian_Kas_Menurut_Para_Ahli\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Understanding Cash According to Experts<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The definition of cash in accounting is company assets in the form of cash, starting from banknotes, metals, money orders, checks, etc. which are held by the company or stored in the bank and can be used for general company activities. <\/span><span style=\"vertical-align: inherit;\">According to the Indonesian Institute of Accountants or IAI, cash is an investment that can be liquid, has a short term and can be quickly turned into cash in a certain amount without having to face the risk of significant changes in value.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Apart from that, IAI also states that cash consists of cash on hand balances, checking accounts or cash equivalents. <\/span><span style=\"vertical-align: inherit;\">In the balance sheet, cash will appear as the first item at the top because it is the most liquid asset in the company. <\/span><span style=\"vertical-align: inherit;\">Companies often include cash equivalents in this category, namely money market mutual funds and other short-term investments that are easy to convert into cash.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">To make it easier to understand the meaning of cash itself, here are several explanations regarding the definition of cash according to experts:<\/span><\/span><\/p>\n<h3><span id=\"1_Thomas_Sumarsan\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Thomas Sumarsan<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to Thomas Sumarsan, the definition of cash is a current asset that is very liquid and can be used directly for the continuity of business activities in the company.<\/span><\/span><\/p>\n<h3><span id=\"2_Zaki_Baridwan\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Zaki Baridwan<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Zaki has the opinion that cash is a medium of exchange and can be used in the form of measurement in the field of accounting.<\/span><\/span><\/p>\n<h3><span id=\"3_Rudianto\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Rudianto<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to Rudianto, cash is a company&#8217;s means of payment or exchange and can be used directly for company transaction activities when needed by the company.<\/span><\/span><\/p>\n<h3><span id=\"4_Theodorus_M_Tuanakotta_AK\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4. Theodorus M. Tuanakotta, AK<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to this accounting expert, cash is all money and savings stored in the bank. <\/span><span style=\"vertical-align: inherit;\">Where the money can be withdrawn directly at any time without reducing the value of the savings.<\/span><\/span><\/p>\n<h3><span id=\"5_Dwi_Martani\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">5. Dwi Martani<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">According to Dwi Martani, cash is the most liquid financial asset and can be used every day for company continuity activities and also to fulfill company obligations.<\/span><\/span><\/p>\n<h2><span id=\"Jenis-jenis_Akun_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Types of Cash Accounts<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">There are several types of cash accounts in bookkeeping. <\/span><span style=\"vertical-align: inherit;\">Depending on its size, a business can manage revenue and bill payments in one or more types of accounts. <\/span><span style=\"vertical-align: inherit;\">For example, a retail business may have separate operating accounts and merchant accounts, for example as a credit card transaction storage account.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Other large companies may also have separate operating and payroll accounts. <\/span><span style=\"vertical-align: inherit;\">Apart from that, they also have a cash account to earn interest income. <\/span><span style=\"vertical-align: inherit;\">With these various possibilities, there are several types of cash accounts that you need to know, including:<\/span><\/span><\/p>\n<h3><span id=\"1_Rekening_Giro_Operasional\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Operational Current Account<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">A business will generally allocate certain checking accounts. <\/span><span style=\"vertical-align: inherit;\">This account is called an operating account and is used to handle business activities such as paying bills and depositing income.<\/span><\/span><\/p>\n<h3><span id=\"2_Rekening_Giro_Payroll\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Payroll Checking Account<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">As the name suggests, this payroll account is used to make payroll. <\/span><span style=\"vertical-align: inherit;\">There are many medium to large companies that have special checking accounts to pay employee salaries.<\/span><\/span><\/p>\n<h3><span id=\"3_Rekening_Merchant\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Merchant Account<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">If a business allows its customers to pay with a credit card or debit card, then it probably has a merchant account. <\/span><span style=\"vertical-align: inherit;\">This account is only used for financial traffic from trading activities.<\/span><\/span><\/p>\n<h3><span id=\"4_Rekening_Kas_Kecil\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4. Petty Cash Account<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This account is also called an imprest account because it always has the same balance. <\/span><span style=\"vertical-align: inherit;\">Most companies have a cash box to be used to pay small expenses every day. <\/span><span style=\"vertical-align: inherit;\">The money in the petty cash is used.<\/span><\/span><\/p>\n<h3><span id=\"5_Sweep_Account\" class=\"ez-toc-section\"><\/span>5. Sweep Account<\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This account is a way for companies to get investment income automatically. <\/span><span style=\"vertical-align: inherit;\">Every day, any extra money in the company&#8217;s operational account is collected and also transferred to the investment account.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Permalink to: What is Liquidity? Definition, Function, and Example Questions\" href=\"https:\/\/mudabicara.com\/en\/what-is-liquidity-definition-function-and-example-questions\/\" rel=\"bookmark\">What is Liquidity? Definition, Function, and Example Questions<\/a><\/strong><\/span><\/pre>\n<h2><span id=\"Jenis-jenis_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Types of Cash<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Cash in the company can be divided into several synchronous parts based on its use. <\/span><span style=\"vertical-align: inherit;\">The following are several types of cash accounts in the company, including:<\/span><\/span><\/p>\n<h3><span id=\"1_Petty_Cash_atau_Kas_Kecil\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Petty Cash or Petty Cash<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Petty cash is a cash account in the form of cash prepared by a company to pay various kinds of expenses that are relatively small in value and economical. <\/span><span style=\"vertical-align: inherit;\">In other words, petty cash or petty cash is money prepared by a company to pay various company expenses which are small in amount and not economical if paid by check.<\/span><\/span><\/p>\n<h3><span id=\"2_Kas_di_Bank\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Cash in Bank<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Cash in the bank is company money that is in a bank account. <\/span><span style=\"vertical-align: inherit;\">Generally, this cash is used for relatively large expenditures and it is not possible to provide it in the form of cash in transactions because the amount is large and is vulnerable from a security perspective. <\/span><span style=\"vertical-align: inherit;\">Usually this type of cash is related to a bank statement for the company.<\/span><\/span><\/p>\n<h3><span id=\"3_Pelaporan_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Cash Reporting<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Even though cash reporting can be done directly, there are problems with reporting. <\/span><span style=\"vertical-align: inherit;\">Issues related to cash reporting are divided into 3 parts, including:<\/span><\/span><\/p>\n<h4><span id=\"a_Cash_Equivalents\" class=\"ez-toc-section\"><\/span>a. Cash Equivalents<\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Cash equivalent or what is usually called cash equivalent is a group of company assets that have a maturity of less than three months. <\/span><span style=\"vertical-align: inherit;\">This will be very useful when used in difficult or unstable economic conditions. <\/span><span style=\"vertical-align: inherit;\">Examples of cash equivalents are government debt securities and treasury bills.<\/span><\/span><\/p>\n<h4><span id=\"b_Restricted_Cash\" class=\"ez-toc-section\"><\/span>b. Restricted Cash<\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Restricted cash or what is usually called limited cash is cash that is deliberately set aside for future obligations, the amount of which is quite significant. <\/span><span style=\"vertical-align: inherit;\">The following is an overview of restricted cash to make it easier for you to understand:<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The company has an obligation to pay environmental damage worth 15 million rupiah for the next five years. <\/span><span style=\"vertical-align: inherit;\">Based on these conditions, the company will set aside 15 million rupiah into a restricted cash account.<\/span><\/span><\/p>\n<h4><span id=\"c_Bank_Overdrafts\" class=\"ez-toc-section\"><\/span>c. Bank Overdrafts<\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Bank overdrafts are when a company issues a check whose value is greater than the balance in the bank. <\/span><span style=\"vertical-align: inherit;\">For example, regarding bank overdrafts, the Maju Jaya Company issued a check worth 120 million rupiah, even though the balance in their account at the bank was only worth 100 million rupiah. <\/span><span style=\"vertical-align: inherit;\">So the existing 20 million goes into short-term debt.<\/span><\/span><\/p>\n<h2><span id=\"Kriteria_Akun_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Cash Account Criteria<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Because it can have an impact on accounting, this cash account is considered special bookkeeping. <\/span><span style=\"vertical-align: inherit;\">The cash account is usually useful as a ledger and also the main entry book in accounting. <\/span><span style=\"vertical-align: inherit;\">There are two cash account criteria, including:<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">a. <\/span><span style=\"vertical-align: inherit;\">Available: there must be cash available in it to then be used for the company&#8217;s daily expenses. <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">b. <\/span><span style=\"vertical-align: inherit;\">Free: if accepted as a means of payment generally according to its nominal value, then each item will be classified as cash.<\/span><\/span><\/p>\n<h2><span id=\"Contoh_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Cash Example<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The following are several examples of cash that need to be understood, including:<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">a. <\/span><span style=\"vertical-align: inherit;\">Cash: This is money that you can use in the form of paper or metal which is valid for payments. <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">b. <\/span><span style=\"vertical-align: inherit;\">Travelers Check: This is a check issued by a commercial bank, which can be used to serve customers who want to travel or travel for a certain time over long distances. <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">c. <\/span><span style=\"vertical-align: inherit;\">Postal money order: The meaning of a postal money order is a document that can be used as cash when you suddenly want to use it. <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">d. <\/span><span style=\"vertical-align: inherit;\">Check: This is a document that can be accepted as payment from another party. <\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">e. <\/span><span style=\"vertical-align: inherit;\">Company Money: Money that is stored in the bank and can be withdrawn at any time, can be categorized as cash and cash equivalents.<\/span><\/span><br \/>\n<span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">f. <\/span><span style=\"vertical-align: inherit;\">Cashier&#8217;s Check: This is a check made and signed by a bank which can be drawn by that bank to make payments to other parties.<\/span><\/span><\/p>\n<h2><span id=\"Contoh_Penggunaan_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Example of Cash Use<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">As previously discussed, this term is also used in bookkeeping. <\/span><span style=\"vertical-align: inherit;\">Small companies usually use cash accounting because it is relatively easier and more basic. <\/span><span style=\"vertical-align: inherit;\">Cash accounting provides a clearer picture of how much money a company actually has. <\/span><span style=\"vertical-align: inherit;\">However, the downside is that when payments are registered in cash, the cash has a delayed impact on the account. <\/span><span style=\"vertical-align: inherit;\">Therefore, it is often less precise for the near future than other types of accounting. <\/span><span style=\"vertical-align: inherit;\">The following is an example of its use.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">For example, a B2B transaction occurs between company A and company B. Company A receives Rp. <\/span><span style=\"vertical-align: inherit;\">25 million from the sale of 5 computers to company B on February 15. <\/span><span style=\"vertical-align: inherit;\">The transaction was recorded as occurring on February 15 even though the order was made on January 20. <\/span><span style=\"vertical-align: inherit;\">When does the order occur does it matter? <\/span><span style=\"vertical-align: inherit;\">Because company B didn&#8217;t pay until February 15, when the computers were actually delivered.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">On the other hand, company A continues to document transactions worth Rp. <\/span><span style=\"vertical-align: inherit;\">25 million on January 20 under accrual accounting, even though no money was actually paid on that day. <\/span><span style=\"vertical-align: inherit;\">With this accounting, companies report expenses when paying them.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Permalink to: What are the Basic Principles of Assessment? Definition, Function and Things That Influence It\" href=\"https:\/\/mudabicara.com\/en\/what-are-the-basic-principles-of-assessment-definition-function-and-things-that-influence-it-2\/\" rel=\"bookmark\">What are the Basic Principles of Assessment? Definition, Function and Things That Influence It<\/a><\/strong><\/span><\/pre>\n<h2><span id=\"Manfaat_Akun_Kas_di_Dalam_Bisnis\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Benefits of Cash Accounts in Business<\/span><\/span><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Despite its weaknesses, cash accounting has several important functions in a business. <\/span><span style=\"vertical-align: inherit;\">This type of accounting is quite useful, especially for small companies. <\/span><span style=\"vertical-align: inherit;\">The following is a complete explanation.<\/span><\/span><\/p>\n<h3><span id=\"1_Ramah_Untuk_Pemula\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Beginner Friendly<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">You no longer need to be an accounting expert to be able to start bookkeeping with this cash account. <\/span><span style=\"vertical-align: inherit;\">Where you only need to record transactions when you pay a fee and get paid for a service or sale. <\/span><span style=\"vertical-align: inherit;\">Plus, you won&#8217;t have as many accounts to keep track of and you won&#8217;t need to understand the double-entry bookkeeping system.<\/span><\/span><\/p>\n<h3><span id=\"2_Pelacakan_Arus_Kas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Cash Flow Tracking<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Another benefit of using a cash account is that it can provide a clear picture of how much cash you have for later use. <\/span><span style=\"vertical-align: inherit;\">This is very useful for small businesses and beginners, because they can manage expenses more easily. <\/span><span style=\"vertical-align: inherit;\">What you have in your cash account is what you have to spend at any given point in time. <\/span><span style=\"vertical-align: inherit;\">Vice versa, with accrual accounting, you only need to factor future payments and receivables into the equation.<\/span><\/span><\/p>\n<h3><span id=\"3_Perihal_Likuiditas\" class=\"ez-toc-section\"><\/span><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Regarding Liquidity<\/span><\/span><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Because it can only be used to record cash transactions, potential investors who want to invest in this business do not need to go through any liquidity ratios. <\/span><span style=\"vertical-align: inherit;\">Potential investors can look at the accounting system, see inflows and outflows, and find out for themselves the net cash flow of the business\/<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This is an explanation of the meaning of cash accounts, their types and benefits for business. <\/span><span style=\"vertical-align: inherit;\">For <em>Mudalovers<\/em> who want to know more deeply about economics and other accounting sciences, you can read related article by visiting <a href=\"https:\/\/mudabicara.com\/en\/\">mudabicara.com<\/a>. <\/span><span style=\"vertical-align: inherit;\">To support <em>Mudalovers<\/em> in broadening their knowledge.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cash account is one of the accounts most often encountered when <a class=\"read-more\" href=\"https:\/\/mudabicara.com\/en\/what-is-a-cash-account-this-is-the-meaning-examples-and-benefits-for-business\/\" title=\"What is a Cash Account? 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