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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.
What Does Cash Mean? The cash account, like all asset accounts, is a debit account. This means that debit or left entry in the cash account would increase the cash account. A credit entry would do the opposite. Accounting Example. Cash is recorded as a current asset on the balance sheet. Even though cash can be saved for future periods, it is still considered a current asset because it can because it can be used in one period. Long-term assets like vehicles cannot be completely used during one accounting period.