Cash is defined as money, checks, or anything accepted by banks. This statement is:

• A. True.
• B. False.
• C. Only money.
• D. Only checks.

Answer: (A)

Cash is the most liquid asset and includes more than just physical currency. It covers money on hand plus items that banks will treat as immediate payment or deposit, such as checks and other negotiable instruments that banks accept to be converted into funds. Because banks accept these instruments as usable funds, they are considered part of cash or cash equivalents for practical purposes. Therefore, the statement is true.