While cash is listed as a current asset on the balance sheet, cash within a business is closely associated with both the asset and liability side of the balance sheet (Lasher, 2011). The paper will now consider how cash within a business may be linked to both the concepts of assets and liabilities.
Cash Provision
One key issue is to consider were a business obtains its cash from (Lasher, 2011). Sales revenue may be seen as one such source, in this case the business simply converts one form of current asset (inventories) into a more liquid form (cash) through the process of cash sales (Arnold, 2007). ...
