The systematic recording of business transactions in monetary terms is auditing B.Simplified and Amplified Financial Accounting – 7 State four duties of an accountant in a business organisation.List five benefits of book-keeping and accounting.setting of targets and determining the best ways to achieve them. Properly kept records are used for planning purposes i.e.It is useful for making economic comparison among businesses and comparing recent financial results with past financial results. To ascertain the assets and liabilities of the business.It serves as a basis for assessing the tax to be paid by the business.To determine the solvency and liquidity of a business.To assess and ascertain the financial position of the business as at a particular date.Financial records help in the prevention of fraud.The existence of financial records helps in decision making by managers of the business.To determine the profit or loss made by the business during a particular trading period.Importance of bookkeeping and accounting or reasons why accounting records are kept Book-keeping is an integral part of accounting while accounting is more complex and has book-keeping as one of its components.Book-keeping records are mainly for internal use in an organisation while accounting records are both internal and external use.The time required for training to be a qualified book-keeper is shorter (about few months) compared to an accountant (about five years).Book-keeping is limited in scope (i.e area of coverage) while accounting has a wider scope.Book-keeping concentrates only on the routine recording of transactions while accounting goes beyond the aspect of recording to classify, analyse, summaries and interpret financial information.Differences between bookkeeping and accounting Accounting:Īccounting is the act of recording, classifying, analyzing, summarizing, interpreting and communicating financial information of an organisation to various end-users of such information. Justify the study of Financial Accountingīook Keeping is the systematic recording of the daily financial transactions of an organization so that the financial position of a business can be readily ascertained or determined at any time.Differentiate between Book-Keeping and Accounting.Introduction to Bookkeeping and AccountingĪt the end of the lesson, you should be able to
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