cash account: meaning, definition, pronunciation and examples
B2Formal, Business, Financial
Quick answer
What does “cash account” mean?
A record of a customer's deposits and withdrawals held by a business or bank, where transactions are settled immediately in cash or cash equivalents.
Audio
Pronunciation
Definition
Meaning and Definition
A record of a customer's deposits and withdrawals held by a business or bank, where transactions are settled immediately in cash or cash equivalents.
In brokerage, a type of investment account requiring full payment for securities purchased; in accounting, a ledger account tracking cash inflows and outflows.
Dialectal Variation
British vs American Usage
Differences
Terminology identical; however, specific regulations and features of brokerage cash accounts may differ between jurisdictions.
Connotations
Neutral financial term in both varieties.
Frequency
Equally common in formal financial contexts in both the UK and US.
Grammar
How to Use “cash account” in a Sentence
to have a cash account with [Bank/Company]to pay from/into the cash accountto keep [something] in a cash accountVocabulary
Collocations
Examples
Examples of “cash account” in a Sentence
verb
British English
- We will cash account for the petty expenses quarterly.
- The transaction was cash accounted.
American English
- The firm cash accounts all its retail sales.
- These proceeds need to be cash-accounted.
adverb
British English
- The payment was made cash-account.
American English
- The books are kept cash-account.
adjective
British English
- They operate on a cash-account basis.
- Follow the cash-account procedure.
American English
- It's a cash-account requirement.
- He has a cash-account relationship with the broker.
Usage
Meaning in Context
Business
The company's daily transactions are recorded in the main cash account.
Academic
The study analysed the impact of cash accounting versus accrual accounting on small businesses.
Everyday
I keep a separate cash account for my holiday savings.
Technical
For this trade, you must use a cash account as margin trading is not permitted.
Vocabulary
Synonyms of “cash account”
Strong
Neutral
Weak
Vocabulary
Antonyms of “cash account”
Watch out
Common Mistakes When Using “cash account”
- Using 'cash account' to mean a physical wallet or cash drawer.
- Confusing it with a 'savings account', which is for accumulating funds, not immediate settlement.
FAQ
Frequently Asked Questions
A checking account (US) / current account (UK) is for everyday banking. A 'cash account' is a broader financial term that can refer to a ledger in accounting or a specific type of brokerage account with immediate settlement rules.
No, by definition, a cash account implies transactions are settled with existing funds, not credit. For loans, you would need a credit or margin facility.
They are related. A cash account is the record where transactions are logged. 'Cash accounting' is the overall method of accounting that uses such accounts, recognizing revenue and expenses only when cash is exchanged.
To avoid debt, interest charges, and the higher risk of margin calls. It enforces more disciplined, capital-limited investing.
A record of a customer's deposits and withdrawals held by a business or bank, where transactions are settled immediately in cash or cash equivalents.
Cash account is usually formal, business, financial in register.
Cash account: in British English it is pronounced /ˈkæʃ əˌkaʊnt/, and in American English it is pronounced /ˈkæʃ əˌkaʊnt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “on a cash account basis”
- “cash-account only”
Learning
Memory Aids
Mnemonic
Think CASH = 'Coins And Sh* Handy' – an account where you need the actual money handy to pay.
Conceptual Metaphor
MONEY IS A FLUID (in the account); IMMEDIACY IS PROXIMITY (cash is 'on hand').
Practice
Quiz
What is a defining feature of a cash account in a brokerage context?