Where are cash transactions typically recorded?

Cash transactions are typically recorded in the cash book because it is specifically designed to record all cash receipts and cash payments made by a company. This book provides a detailed record of cash transactions, enabling businesses to keep track of cash flow effectively. The cash book serves as both a journal and a ledger, where all transactions involving cash inflow and outflow are documented, facilitating easy reference and reconciliation.

The cash book helps ensure that cash balances are accurate, making it essential for businesses in managing their liquidity. It also allows for better control over cash resources, as it enables the identification of cash shortages or surpluses quickly.

In contrast, while the general ledger contains comprehensive records of all accounts including assets, liabilities, income, and expenses, it does not specifically focus solely on cash transactions. The expense report pertains to tracking expenses incurred, which might not exclusively involve cash transactions. Similarly, accounts payable relate to amounts owed to suppliers and do not encompass all cash transactions. Thus, the cash book stands out as the appropriate record for cash transactions specifically.