A cash book with cash, bank and discount column is commonly referred as________?
Correct answer: A. Three columns cash book
- A. Three columns cash book
- B. Two columns cash book
- C. Cash book
- D. Petty cash book
Explanation
A cash book containing cash, bank and discount columns has three principal columns, so it is called a three-column cash book. A two-column cash book normally contains cash and bank columns only.
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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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