Which of the following best describes cash received in business transactions?

The choice indicating that cash received in business transactions can include sales and payments against invoices is the most accurate description. This is because cash inflows in a business come from various sources related to its operations. When a business makes a sale, the cash received from customers is recognized as a cash inflow. Similarly, when customers pay their outstanding invoices, that cash also counts toward the business's overall cash receipts.

Cash received is essential for maintaining liquidity and operational functionality within a business, as it enables the company to pay its expenses, reinvest in growth, and manage day-to-day operations effectively. Thus, identifying that cash received can encompass both sales transactions and payments for previous invoices highlights the dynamic nature of cash flow in a business environment.