**The Cash Book records all cash receipts and payments.**

The Cash Book is a special type of ledger that is used to record all cash transactions of a business. It plays a crucial role in maintaining the financial records and ensuring accurate and up-to-date information about the cash inflows and outflows.

**Understanding the options:**

a) All cash payments: This option suggests that the Cash Book records only cash payments made by the business. However, this is not correct as the Cash Book also records cash receipts.

b) All cash receipts: This option suggests that the Cash Book records only cash receipts received by the business. Again, this is not accurate as the Cash Book also records cash payments.

c) All cash receipts and payments: This option correctly states that the Cash Book records both cash receipts and payments. It provides a comprehensive record of all cash transactions, giving a clear picture of the cash flow of the business.

d) Cash and credit sale of goods: This option suggests that the Cash Book records both cash and credit sales of goods. While the Cash Book does record cash sales, credit sales are typically recorded in a separate ledger called the Sales Ledger or Accounts Receivable Ledger.

**Explanation:**

The Cash Book is divided into two sides: the debit side and the credit side. The debit side records all cash receipts, while the credit side records all cash payments. Each transaction is recorded with a date, description, and amount.

Cash receipts include cash sales, cash received from debtors, cash received from loans or investments, and any other cash inflows. Cash payments include cash purchases, cash paid to creditors, cash expenses, and any other cash outflows.

By recording all cash receipts and payments in the Cash Book, businesses can easily track their cash position, monitor cash inflows and outflows, and reconcile their cash balance with the bank statement. This helps in maintaining proper control over cash, detecting any discrepancies or errors, and ensuring the accuracy of financial statements.

Overall, the Cash Book serves as a primary tool for recording, analyzing, and managing cash transactions in a business. It provides a complete record of all cash receipts and payments and forms an integral part of the financial accounting system.