An Explanation of Current Assets
Current assets carry the most value to the small business entrepreneur because of the cash conversion aspect.
Cash Equivalents
Cash equivalents refers to actual cash or cash like items. Cash equivalents include bank accounts, CD’s, bank notes, savings accounts, current receivables, and investment instruments (stocks, bonds, etc.).
Cash is King – The Value of Cash Flow
For any small business operation, getting cash into the bank account is critical to survival. Without cash, the probability of success dissipates quickly. How do you get cash into the bank account? There are several sources of cash: they include capital, loans and customer payments.