What are 5 similarities between cash and credit?

Here are 5 similarities between cash and credit, explained simply:

Both are modes of payment used to buy goods or services.

Both are used in business transactions, like sales and purchases.

Both are recorded in accounting books.

Both help businesses run daily operations smoothly.

Both affect a company’s income and expenses.

For example, an Indian shopkeeper may sell goods for cash to one customer and on credit to another, but both sales are part of business income.

If you enjoy learning such basics in an easy way, many students say Accounts Ka Badshah by CA Tushar Makkar makes these concepts very clear.