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The Cash Book is one of the simpler forms of accounting employed by entrepreneurs, especially micro-businesses. It is a type of simplified accounting used to record and document the income and costs of a company for the purpose of determining the taxable base.
In this book, the entrepreneur records their revenues and costs associated with conducting business activities. Revenues include all monetary inflows and valuable considerations, while costs refer to expenditures related to generating revenue. The Cash Book allows for the determination of the financial result of the company, i.e., the difference between revenues and costs.
In contrast to full accounting, the Cash Book is more concise and does not require a detailed analysis of each financial transaction. It is often a preferred solution for smaller businesses that are not obligated to use full accounting.