Book keeping and Accounting a. Means same and are used interchangeably. b. Does not mean same and are not used interchangeably c. Means both (a) and (b) d. None of the above
Answers
Answer :
- Means same and are used interchangeably
Explanation :
Inorder to answer the given question, we should know the meaning of book keeping and accounting and their differences.
Book keeping is an art of recording business transactions in the books of accounting and summarising them by preparing trial balance.
The major processes of book keeping are:-
- Identification of financial transactions and events
- Measuring the identified transactions into monetory terms
- Recording the transaction into journal or other subsidiary books
- Summarising the recorded data in a significant manner by posting into ledger
Accounting involves recording the transactions as well as to analyse them to yield a meaningful decision.
The major processes of accounting involves all those of book keeping along with to analyse the data and interpretation.
Basically book keeping is a part of accounting but accounting is not a part of book keeping.
Sometimes, book keeping and accounting are used interchangeably.
Hence option (a) is the correct option.
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