Certified Medical Administrative Assistants (CMAA) Practice Exam

In a business context, the term for paper currency and coins is recognized as cash. Cash is fundamental to business operations as it represents liquid assets that can be readily used for transactions, such as purchasing goods and services or paying creditors. It is essential for maintaining day-to-day operations and managing the business's immediate financial obligations.

Assets generally encompass a broader range of items owned by the business, including both tangible and intangible resources. Capital refers to the financial resources available for use in the business, which may comprise cash among other forms of funding, but does not exclusively refer to paper currency or coins. Accounts payable, on the other hand, specifically relates to the amounts a business owes to its suppliers or creditors for goods and services received. This highlights different financial aspects rather than the physical form of money used for transactions. Thus, cash distinctly identifies the physical currency utilized in business dealings, affirming its definition as the correct answer.