Accounting as a subject is very dynamic. Although it is an independent study, it has a strong relationship with other subjects in other fields.
The subjects and their relationship with accounting are very much close and will be discussed below;
ACCOUNTING AND MANAGEMENT
Accounting and Management are very closely related. Management is dependent on accounting because it depends solely on accounting for information in financial affairs in order to make decisions.
Accounting provides all sorts of financial information to management in project planning and implementation of a business concern. With the help of accounting, the management can take decisions concerning project planning and implementation.
In the modem business age, the responsibilities of planning, making decisions and management have been transferred from owners to professional managers. As a result of this, all managerial functions are directed to the growth and development of business concern.
In this regard, Accounting aids the management in taking timely and good decisions by interpreting and analyzing financial information.
Managers cannot make effective decisions for their respective business without the help of financial statements and other statements of accounts.
ACCOUNTING AND ECONOMICS
Accounting and Economics have a very close relationship. Economics is a science which is related to human behavior to fulfill demand with limited goods and services.
Economics explains how people earn and spend money, how buyers and sellers behave under different circumstances etc. while Accounting records business transactions which can be measured in terms of money and provides necessary and relevant information to both the purchasers and sellers for decision making.
So we can say that these two subjects are interrelated. In this perspective bringing about a synthesis between economics concept and accounting, the concept of social sciences is being applied.
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ACCOUNTING AND MATHEMATICS
Accounting and Mathematics are closely related to each other. While accounting is the language of business, Mathematics is the language of Accounting. At different stages of accounting, we apply the laws of addition, subtraction, multiplication, and division of numbers.
Accounting will not make any sense without mathematics because accounting expresses all its transactions and events of financial changes in the language of mathematics. Mathematical principles are applied At all stages of accounting i.e. in preparing journal, ledger, trial balance, and financial statements etc.
Mathematics has made the processes of keeping accounts become easy, short and understandable. So it is safe to say Mathematics is an indispensable part of Accounting.
ACCOUNTING AND COMPUTER SCIENCE
Accounting and Computer Science have effective relationship. The word “computer” was derived from the word "compute" which means counting and the meaning of computer is counter.
With the aid of a computer, it is possible to solve mathematical problems involving millions, billions or even trillions of figures within a few seconds and these can also be be stored in it. Accounting accounts of various transactions are to be recorded and the results are to be determined.
Before the invention of computer, it takes a lot of time and labor and even then the accuracy of Accounting cannot be hundred percent accurate. The computer has removed all these obstacles. Because using all kinds of information and data relating transactions as per definite table and program in a computer, preparation of accurate accounting is possible within a very short time.
Computer saves time and energy. Besides, Preparation of various accounts as per need, storage, and verification of the validity of ratio are done very quickly with the help of a computer system.
In the developed countries of the world, solving accounting problems via application of computer is growing fast. In my country, the use of computer to solve accounting problems is increasing, what about your country? Therefore, the relation between Accounting and Computer is very close and important.
ACCOUNTING AND STATISTICS
Accounting and Statistics are deeply related. The main objective of accounting and statistics is to make arithmetical figures understandable and logical, then present them in the form of statements making them useful to owner, directors or all concerned parties.
It makes the act of planning and decision-making easier. The main duty of statistics is to collect classify, analyses the quantitative data of various events and to present them to the parties concerned.
For this reason, a statistician presents the data in quite a short form of reports to the individuals or organization concerned so that they can make decision depending on the information presented to them.
In Accounting, after completion of some accounting processes of transactions, final accounts and financial statements are prepared and on the basis of various information of such financial statements; the owners and the directors of the business can take decisions.
ACCOUNTING AND LAW
Accounting and Law are closely related because the prevailing laws of a country mostly control trade and commerce.
The accountant and accounts officer of a business concern must be knowledgeable about partnership law, company law, tax law, industrial law, cooperative law, and other relevant laws in its country of operation.
For example, the accounts of every company are kept accurately in the light of company law. In partnership business, accounts are maintained in the light of the partnership act or agreement as the case may be.
Preparing accounts, auditing of accounts of a company are compulsory as per the specific provision of the companies act. Similarly, accounts of other organizations are to be kept in accordance with the provisions of the relevant law. Lawyers are to know the provision of laws relating to accounting methods, direction and controlling.
Otherwise, it will be impossible to properly settle conflicts and cases. Therefore, both Accounting and Law are closely related subjects.
ACCOUNTING AND POLITICAL SCIENCE
The main objective of Political Science is to ensure law and order for establishing rule of law in the society.
For this reason problems like national income and expenditure; national development expenditure and probable income from national prospects etc. arise from political science. It is the duty of accounting to keep proper accounts of this national income, expenditure and providing information in this regard.
Some of the duties of accounting are maintaining accounts and auditing of accounts of government tax administration, expenditure of various projects, income tax, etc. Therefore, there is a close relationship between Accounting and Political Science.
ACCOUNTING AND ENGINEERING
Accounting and Engineering are among the important branches of modem social sciences. These two subjects are important in the production and building process.
A specialized type of plant and machinery are needed in factories for production. These plants and machines are made by the engineers. The estimation regarding types of goods and quantity of goods to be manufactured and amount of expenditure to be involved in machinery etc. of a business is to be accounted for.
As a result of this, the entrepreneurs, directors, managers of a production-oriented business should have the knowledge of engineering. The function of an accountant in a production-oriented business is to ascertain the ratio between money invested in plant and machinery and the output and present it to the managers in the form of statements.
Without adequate knowledge of engineering, an accountant cannot provide accurate information in respect to plant and machinery
So, in the modem age of complex and large-scale production, the knowledge of accounting and engineering is vital for achieving the target by running a business successfully.