How do you calculate cash on hand? Does this calculation include total current assets?
submitted by Nikki

Lenore

Cash on hand is the amount of cash you physically have right now. To find it, you check your cash account and maybe petty cash. It doesn't involve other current assets like inventory or receivables because those aren't cash yet.

Stephan_with_a_P

Cash on hand is exactly what it sounds like. It's actual cash, sitting around in a drawer or a piggy bank. You just pull it out and count it, along with any coins you find under the couch cushions.

Terrance

Cash on hand is pretty straightforward. It does include literal cash (bills and coins) that you have sitting around. It does also include banknotes, and any short-term investments that are easily converted to cash. It doesn't include all current assets, only the liquid ones like cash itself.