[amp_mcq option1=”Simple journal” option2=”Special journal” option3=”(A) and (B) both” option4=”None of the above” correct=”option1″]
The correct answer is: A. Simple journal.
A cash book is a book of original entry that records all cash receipts and cash payments. It is a simple journal because it only records two types of transactions: cash receipts and cash payments.
A special journal is a book of original entry that records a specific type of transaction. For example, a sales journal records all sales transactions, and a purchases journal records all purchases transactions.
Therefore, a cash book is not an example of a special journal.