Receipts
Payments
Incomes
Expenditures
Answer is Right!
Answer is Wrong!
The correct answer is B. Payments.
A cash book is a book of original entry used to record all cash receipts and payments. It is a two-column book, with one column for receipts and one column for payments.
Purchase of office equipment for cash is a payment, so it would be recorded in the payments column of the cash book.
The other options are incorrect because:
- Receipts are cash received by the business.
- Incomes are the profits or earnings of the business.
- Expenditures are the costs or expenses of the business.