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BRANCHES OF ACCOUNTING The advancements and continuous evolution of the commerce, trade and industry in the world has lead to the increased scope of the accounting. As a result, the different Branches of Accounting come into existence which is as follows: FINANCIAL ACCOUNTING Financial Accounting involves preparation of accounting records for a particular period of…
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTANCY Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping. It means to keep the books of accounts to record all the financial transactions. It is concerned with identification of transactions and events,…
DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY To understand the Difference Between Accounting and Accountancy, these both terms should be understood: Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss…
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING To understand the Difference between Book keeping and Accounting, firstly we understand the both terms: Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping. It means to keep the books of accounts…
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ACCOUNTING IS AN ART OR SCIENCE Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is…
ACCOUNTANCY Accountancy refers to systematic knowledge of accounting concerned with the principles and techniques which are applied in accounting. It tells us how to prepare the books of accounts, how to summarize the accounting information and how to communicate it to the interested users. ACCORDING TO KOHLER “Accountancy refers to the entire body of theory…
MEANING Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping which means to keep the books of accounts to record all the financial transactions. It is concerned with identification of transactions and events, expressing them in the monetary…
NON- PROFIT ORGANISATION Non Profit Organisation is a kind of organisation which is set up to promote the social welfare, cultural, educational, professional or religious objectives. These organisations are formed not to earn profit but to render their services to the society for the upliftment of the various sections of the society. It is a…
LIMITATIONS OF ACCOUNTING Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. But it suffers from drawbacks which hinders its utility. The Limitations of Accounting are as follows: INFLUENCED BY PERSONAL JUDGMENTS Accounting is viewed…
BENEFITS OF ACCOUNTING Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is associated with communicating…
