What is the difference between cash and currency?

In economics, cash is money in the physical form of currency, such as banknotes and coins . In bookkeeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts ).

What is the purpose of cash?

Cash is legal tender that can be used to exchange goods, debt, or services. The term "cash" can sometimes also include the value of assets that can be converted into cash immediately. Cash has been used for as long as goods and services have been traded.

What are the different types of cash?

Cash is classified as a current asset. Current assets are assets that can be easily converted to cash and cash equivalents within a year or working capital cycle. Cash can be also classified into tangible assets since it has a physical presence and can be touched.