Economics · Accounting
Which of the following describes the correct difference between a Cash Book and a Cash Account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A Cash Book is prepared by all business firms, whereas maintaining a Cash Account is not a general practice.
- 2A Cash Account is the first step of recording transactions, while a Cash Book is prepared after journalizing.
- 3A Cash Account is an account within the general ledger, while a Cash Book is a separate book of original entry.✓
- 4A Cash Account records both cash and bank transactions, whereas a Cash Book records only cash transactions.
Correct answer
A Cash Account is an account within the general ledger, while a Cash Book is a separate book of original entry.
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