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Bookkeeping Vs Accounting Vs Accountancy

Bookkeeping Vs Accounting Vs Accountancy

Bookkeeping Vs Accounting Vs Accountancy

What is Distinction Accounting Vs Accountancy

What is Accounting ? Accounting Vs Accountancy

Accounting: Accounting starts where Book Keeping ends. It summarize the classified transactions and analysis and interpreting the summarized result and communicate the information to interesting parties.

1. It is concerned with Recording Classifying and summarizing of transactions.
2. It is narrow in scope. Accounting starts where Book keeping ends.
3. It depends on Book keeping.
4. Its main function is to ascertain the net results and the financial position of the business and to communicate them to interested parties.

Accountancy:

Refers to systematic knowledge of accounting concerned with the principal and technique which are applied in accounting.

It tell us how to prepare the accounts how to summarize its information and how to communicate it to interesting parties.

Accountancy refers to the entire body of the theory and practice of accounting.
1. It is a body of knowledge prescribing certain rules or principles to be observed while recording, classifying and summarizing of transactions.
2. It is much wider in scope and includes book keeping as well as Accounting.
3. It depends both on book keeping and Accounting.
4. It includes the decision making function also on the basis of information provided by book keeping and Accounting.

Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers.

The communication is generally  in the form of financial Statement that show in the money terms the economic resource under the control of management the art lies in selecting the information that is relevant to users and is reliable .The principal of accountancy are applied to business entitled to three division of practical art named accounting , bookkeeping and auditing .

The american institute of certified public  accountant defines accountancy as art of recording , classifying and summarizing in a significant manners and in terms of money transaction and event which are at least of financial character and interpreting the result thereof.

Bookkeeping Accounting Accountancy
It is very narrow term used to mean the

day to day

Recording of transaction in set of books

as per framed policies

It is comparatively

Narrow in meaning

Since mostly relate to applied

Side of accountancy

It is broad term which includes

Theory principle and system of accountancy

IT is primary stage of recording classifying and summarizing of transactions. It is the secondary stage of recording classifying and summarizing of transaction .It

Starts where book keeping ends.

It is complete process which includes bookkeeping as well as accounting
It depends on correct recording

Of transaction

It depends on book keeping It depends upon two helping hands accounting and book keeping
It is part of accounting and is concerned with records  keeping

Or maintaining of books of accounting which often routine and clerical in nature

It does the work of finding out the financial result net profit /Net loss and financial postion from data provide dby book keeping It includes the decision making work on the basis of information provided by book keeping and accounting

See also : Limitation of Accounting 

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