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The cash book records :
  • a) 
    All cash receipts
  • b) 
    All cash payments
  • c) 
    All cash receipts and payments
  • d) 
    Cash and credit sale of goods
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The cash book records :a)All cash receiptsb)All cash paymentsc)All cas...
Larger firms usually divide the cash book into two parts: the cash disbursement journal that records all cash payments, such as accounts payable and operating expenses, and the cash receipts journal, which records all cash receipts, such as accounts receivable and cash sales.
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The cash book records :a)All cash receiptsb)All cash paymentsc)All cash receipts and paymentsd)Cash and credit sale of goodsCorrect answer is option 'C'. Can you explain this answer?
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