5. ACCOUNTING
According toe the American Institute
of Certified Public Accountants(AICPA)
“Accounting is an art of
recording,classifying,and summarizing in a
significant manner in terms of money
transactions in part at least of a financial
character and interpreting the results there
of”
33. Ram are a senior accountant of Saravana Enterprises Ltd
what three steps would you take your company's financial
statements understandable and decision useful
39. Accounting is an Information system which
receives data inputs, processes the same and
gives its output in the form of information.
40. Accounting includes book keeping as its
preliminary function. Book keeping consists of
recording transactions.
41. DIFFERENCE BETWEEN
BOOK KEEPING AND ACCOUNTING
BOOK KEEPING ACCOUNTING
The objective of book
keeping is to prepare
original books of
accounts
It has limited scope
It is restricted to clerical
work of recording
transactions
Book keeping has to
depend on accounting
for making the
accounting records
The objective of
accounting is to record
analysis and interpret
the business
transaction
It has wider scope
It is concerned with
lower level, medium
level and top level
management
Accounting has to
depend on book keep in
for getting the records