On May 1, Faux Furs, Inc., collected $33,000 from its customers. One quarter of the $33,000 was earned in May and the rest in June through August. During May, Faux Furs' had $5,000 in expenses of which only $1,000 had been paid. How much higher would Faux Furs' net income be in May if it used cash-basis accounting instead of accrual accounting?

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Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.