What is the difference between Cash Book and Cash Flow Statement?
In both the cases receipts as well as payments are recorded, so what is the basic difference/
Please provide similarities between the two if any.
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cash book means all transactions are recived into business purpose but a statement recived for the business purpose is called cash flow statement
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The differences between cash book and cash flow statement are given below:
In cash flow statement, non-cash items are also recorded such as depreciation and in cash book only cash transaction is recorded.
Cash book is a ledger which consist of records of all cash transactions by a company in a systematic manner. Whereas, cash flow statement is a record of performance of an entity over a specified period of transaction.
Cash flow statement is prepared on annual basis whereas cash book is maintained on day to day basis.
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