Accounting begins where book
keeping stops. It summarize the classified transactions and analysis and
interpreting the summarized result and communicate the information to
interesting parties to enable them make decision. The following are the characteristics of Accounting
1. It deals with recording, classifying and summarizing of financial transactions.
2. It is narrow in scope.
Accounting starts where Book keeping ends.
3. It depends on Book keeping.
4. The main function of accounting is to
ascertain the net results and the financial position of the business and to
communicate them to interested parties.
ACCOUNTANCY
Accountancy can be defined as the systematic knowledge of
accounting that relates with the principle and technique which are applied in
accounting system. Accountancy tells us how to prepare the
accounts, summarize its information and communicate it to
interesting parties.
Accountancy is 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 wider in scope.
3. It includes book keeping as well as Accounting.
4. Accountancy depends both on book keeping
and Accounting.
5. It includes the decision making
function.
6. It is the basis of information provided by book keeping and
Accounting.
Accountancy is the process of
communicating financial information about a business entity to interested parties such as
shareholders, board of directors and managers. The communication is in 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 principle 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 (AICPA) defines accountancy as the systematic art of recording,
classifying, interpreting and summarizing money
transaction and event which are at least of financial character and
interpreting the result thereof.
1 Comments
Thanks for sharing this information. Accounting courses in Sydney are specially designed to meet the needs of bigger organizations & companies. Any person who is from the same field can clearly differentiate the difference between accounts & accounting but the information you've provided here is extremely helpful for amateur.
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