Cash is king, right? But what do you call cash when you want to sell your business and are totaling up your assets?
In that situation, cash is counted separately from the assets.
As law firm TKO Miller explains, a company's cash and debt are excluded from what the buyer is buying. They liken it to the mortgage on a house, which is not the buyer's concern — the buyer only pays for the value of the property. Same concept. The buyer is purchasing a business for its assets, earnings and the like. They aren't responsible for the debt (which cash can help pay down).
So what does constitute an asset? These are items that are essential to the day-to-day operations of the business, including things like equipment, furniture, fixtures, and the like. This is unique to your business and you should consult your attorney and accountant.
Similarly, in an asset sale — when an owner sells a company's assets but retains legal ownership of the business — cash is not included and the seller also keeps accounts receivable.