Distinguish between book- keeping,accounting and accountancy?
Book keeping is a primary and basic function in the process of accounting and concerned with recording maintanence of books of accounts only and book keeping is the recording of financial transactions. ,,,,,,,,,,,,,,,,
accounting is a secondary function and it starts where book keeping ends, it is responsible for interpreting, clasyfing and analyzing ,reporting summarizing financial data .,,,,,,,,,,,,,,,,
accountancy is a study of systematic knowledge and contains those rules, concept, principals, regulations, procedure which are to be applied in accounting.
Distinguish between book- keeping,accounting and accountancy?
Bookkeeping
Bookkeeping is the process of recording financial transactions in a systematic way. It involves maintaining accurate records of financial transactions such as sales, purchases, receipts, and payments.
Accounting
Accounting involves the preparation, analysis, and interpretation of financial information. It goes beyond bookkeeping and includes tasks such as financial reporting, budgeting, and financial analysis. Accounting helps in making informed business decisions based on financial data.
Accountancy
Accountancy is a broader term that encompasses both bookkeeping and accounting. It involves the overall management of financial information within an organization. Accountants are responsible for ensuring financial compliance, providing financial advice, and assisting with strategic planning.
In summary, bookkeeping is the process of recording financial transactions, accounting involves analyzing and interpreting financial data, and accountancy encompasses the management of financial information within an organization.
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.