Which one of the following statements is true? a.Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account. b.Petty cash can be substituted for a chequing account to expedite the payment of all disbursements. c.The person handling the cash should also prepare the bank reconciliation. d.Sound internal control practice dictates that cash disbursements be made by cheque, unless the disbursement is very small.

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Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.