What does the term 'cash' refer to in business?

The term 'cash' in a business context specifically refers to notes, coins, and money in the bank. It is the most liquid form of asset a business can have, as it is readily available for transactions and immediate use. Cash is crucial for day-to-day operations, including paying employees, suppliers, and other expenses.

While investments and stock options represent potential future cash flows, they are not considered cash because they are not immediately accessible for spending. Fixed assets, like property, contribute to a business's overall value but cannot be used directly for transactions like cash can. Future income receivables, such as invoices or contracts that are yet to be paid, do not qualify as cash either since they represent potential income rather than liquid funds available right now. Thus, the correct answer accurately captures the essence of cash in the realm of business.