Q123
A cash book that is used to record the small payments of cash is generally referred to as
A.
Simple cash book
B.
Two columns cash book
C.
Three columns cash book
D.
Petty cash book
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A cash book that is used to record the small payments of cash is generally referred to as Petty cash book. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the day-to-day normal expenditures of the business which is not related to the direct line of the business.