Cash book records:______________?
Correct answer: C. Cash payments and cash receipts
- A. Cash payments
- B. Cash receipts
- C. Cash payments and cash receipts
- D. Neither cash payments nor cash receipts
Explanation
A cash book records both cash received and cash paid, and may also include bank and discount columns. Therefore, it combines receipt and payment records.
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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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