Cash on Hand and Other Short Term Liabilities on Balance Sheet Item General introduction Role in Simfi Where?
Description Cash on hand is the most liquid item on the asset side of the balance sheet. In Simfi, Cash on hand, together with Other short term liabilities on the liability side, are used to balance the balance sheet. These items can be found under: 1. Financial statement > Balance Sheet > Current assets 2. Financial statement > Balance Sheet > Current liabilities The sums of the asset and liability sides of the balance sheet always need to maintain equilibrium. Whenever this equilibrium is lost, these two balance sheet items serve as stopgaps to restore the balance. In case the sum of the liability side exceeds the total amount of the asset side, cash on hand is adjusted in such a way that equilibrium is reached. On the other hand, if the asset side exceeds the liability side, the item â€˜Other short term liabilitiesâ€™ is adjusted. It is impossible to have negative amounts for either of these items. Furthermore, if one of the two items has a positive value, i.e. higher than zero, the other must be zero, and the other way round.