Question

Which of the following is the major difference between an analysis cash book and a columnar cash book?

A) Purpose
B) Categories
C) Number of columns
D) Date recording

Answer 1

The key difference is the number of columns, with an analysis cash book having more columns for categorizing transactions than a columnar cash book.

Step-by-step explanation:

The major difference between an analysis cash book and a columnar cash book is C) Number of columns. An analysis cash book includes multiple columns to categorize and record transactions based on type and nature, facilitating an analytical review of cash movements within various categories. A columnar cash book, on the other hand, often has fewer columns and is used for recording the date, details, and the amount of each cash transaction without the detailed analytical categorization found in an analysis cash book.