A cash book that is used to record the small payments of cash is generally referred as_________?
Correct answer: B. Petty cash book
- A. Simple cash book
- B. Petty cash book
- C. Three column cash book
- D. Two column cash book
Explanation
A petty cash book is specifically maintained for recording small, frequent cash payments such as postage, stationery and local travel. A simple or columnar cash book records broader cash transactions.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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