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cash on hand. Definition. Funds that are immediately available to a business, and can be spent as needed, as opposed to assets that must be sold to generate cash. The amount of cash on hand determines what projects a company can undertake, or what financial hardships can be absorbed, without going into debt or arranging other financing.
Cash Method of Accounting. The cash method of accounting is a simple method of totaling up the revenues, or sales, and subtracting expenses to arrive at net profit. Think of putting all the cash generated from the sales of the business into a shoebox. When you pay bills, you remove cash from that box.f the assets are greater than the liabilities, the company has a positive net worth. There isn't any recognized method of total revenue accounting, but total revenues are important in the calculation of both the net income statement and balance sheet.