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A Few Related Terms

Accounts Payable
Depreciation
Balance Sheet
EBITDA

Cash
Term category: General Investing, Accounting
In 10 words or less: Aside from the obvious, it refers to liquid assets that aren't invested.

Definition: Cash has a few definitions.

1.) Hard currency (e.g. dollar bills)
2.) Money in an investment account that isn't currently invested.  (This is said to be "in cash").
3.) A line item on the balance sheet that consists of liquid securities.

StockJargon Advice: As an investor, having all your money in cash for a long period of time isn't a good idea because inflation will eat away at your buying power. However, it's important to have access to some cash at all times for emergencies.

If you're in college, you'll want to have cash readily available for your tuition payments. And if you're nearing retirement, you'll want to have cash available for living expenses.

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Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris
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The Interpretation of Financial Statements by Benjamin Graham
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