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.
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.
|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
|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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