Cash is the asset every fraud scheme wants, and the one a cash count can always test directly.
Currency, coins, checks, and a short-term investment within three months of maturity when bought.
Debited when the drawer is short, credited when it has too much — an income-statement account either way.
is a company's ability to pay what it owes soon. are the most short of cash itself — short-term, easily converted, and close enough to maturity that their value barely moves.
A cash count rarely comes out exact. absorbs the difference immediately, so the drawer always balances to the penny on paper, even when the actual count did not.